The recent liquidity crisis of Bitcoin (#比特币流动性危机 ) has exposed the fragility of the cryptocurrency market. When the market experiences concentrated sell-offs and there is insufficient buying support, prices can plummet like a kite with a broken string, even leading to exchanges pausing withdrawals.

This crisis stems from the dual nature of its decentralized characteristics: there is no central bank to back it, and it lacks the market-making mechanisms of traditional financial markets. Some institutions are over-leveraged and are forced to liquidate positions in a chain reaction when liquidity dries up, further exacerbating panic.

This also serves as a reminder to the market that the so-called 'risk-resistant' label of Bitcoin needs to be reevaluated; without stable liquidity support, it acts more like an amplifier of emotions, providing investors with a vivid lesson in risk.