According to Odaily Planet Daily, crypto influencer @qinbafrank posted on the X platform that the main reasons for the recent adjustment in the US stock market are twofold:
1. Regional small and medium-sized banks are experiencing credit problems. Zions Bancorp recorded a $50 million impairment loss on two commercial loans to its subsidiaries. Western Alliance Bancorp sued Cantor Group V for loan fraud. Cantor Group V is a subsidiary of Cantor Fitzgerald, which helps manage Tether's U.S. Treasury reserves.
2. The US government shutdown has led to tight liquidity. Excessive bond issuance has depleted overnight reverse repo quotas, and the government shutdown has prevented the disbursement of funds from the Treasury General Account (TGA). This has led to a continued decline in commercial bank reserves, exacerbating market liquidity.
The analysis believes that the subsequent market direction depends on when the US government shutdown ends.
