Just made my coffee and was getting ready to check the market when a phone push notification popped up and nearly made me spill my cup—Bitcoin plunged 1,200 points in an hour, breaking straight through $42,000! Ethereum was hit even harder, crashing below $2,200. That support line that held for almost half a month was as fragile as a paper window, torn apart by the slightest breeze.

A quick glance at the US stock market was even more nerve-wracking: Nasdaq tanked 2.3% at the open, Tesla dropped over 4%, and Nvidia plummeted 3.7%. The group chat exploded instantly—
"Help, coach! I just increased my position and now I'm stuck. Is this the start of a bear market?"
"I can't handle the pressure. Is it too late to cut my losses now?"
"Just entered the market as a newbie and got schooled immediately—my mentality is completely shattered..."

Looking at a screen full of anxious comments, I couldn't help but feel both helpless and amused. More than half a month ago, I repeatedly emphasized during live streams and in the group: "The signs of tightening liquidity are already clear. You must manage your positions—don't go all in!" But some people just didn't take it seriously.

Actually, this "crypto and stocks double crash" isn't some unexpected black swan event—it's a short-term adjustment with clear signs. If you understand the logic behind it, not only will you not panic, but you might even seize the opportunity to buy the dip.

# Two Key Logics to See Through the Crash

# # Logic One: The Treasury Starts "Draining Liquidity," High-Risk Assets Take the Hit First

Many people might have missed this: the US Treasury's TGA account (basically the government's cash balance) was almost depleted, with less than $50 billion left—like a household running out of savings and urgently needing to replenish.

So, on one hand, they stopped injecting liquidity into the market, and on the other, they aggressively issued $163 billion in Treasury bonds to raise funds. This move is like installing a high-powered pump in a swimming pool, forcibly draining out hundreds of billions in liquidity.