The recent liquidity crisis of Bitcoin $TREE has exposed the fragility of the cryptocurrency market. When there is a concentrated sell-off in the market with insufficient buy support, prices can plummet like a kite with a broken string, even leading to exchanges suspending withdrawals.

This crisis stems from the dual nature of its decentralized characteristics: it lacks the backing of a central bank and 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 intensifying panic.

This also serves as a reminder to the market that Bitcoin's so-called 'risk-resistant' label needs to be re-examined; in the absence of stable liquidity support, it acts more like an amplifier of emotions, providing investors with a vivid lesson on risk. $TREE