Market fluctuations are familiar to everyone, but the logic behind this round of decline is much more complex than it appears on the surface.

"Still falling after the halving?" This question has been heard quite frequently lately. The conventional theory is this—Bitcoin halving reduces new coin supply, so prices should rise. But reality has given a sharp slap to that idea.

The problem isn't with the halving mechanism itself. The real killer move is the market’s "blood"—liquidity—that is being systematically drained. And the orchestrator of this liquidity drain is the U.S. Department of the Treasury.

**The Truth About Liquidity Disappearing Out of Thin Air**

From a peak of $126,000 in early October to below $90,000, many people have started to panic. What exactly is happening behind the scenes? The core reason points to one word: liquidity exhaustion.

A budget crisis in the U.S. government has caused an incredible phenomenon. The Treasury General Account (TGA) balance surged to over $1 trillion, siphoning more than $700 billion from the entire market.

What does this mean? Trillions of dollars that should be active in the market are now frozen in government accounts. Imagine a river whose source is blocked—how could the downstream not dry up?

The crypto industry is the most sensitive to liquidity. Once the fresh water is cut off, no matter how exciting the halving story is or how eager institutions are to enter, they cannot withstand this cold shower. All narratives must give way to the most realistic issue—lack of funds.

**The Chain Reaction of Leverage Liquidation**

Liquidity tightening alone is already deadly.