Odaily Planet Daily reports that analyst Cato_KT stated in an article on the X platform that the core reason for the market decline in the early hours of today was the "draining" of funds from the market during the liquidity tightening phase, specifically due to two points:

1. U.S. Treasury auctions lead to liquidity tightening. Today's auction of 3-month and 6-month U.S. Treasury bonds totaled $163 billion, causing a significant outflow of funds from the financial markets and putting pressure on risk asset prices.

2. Hawkish comments from Federal Reserve Governor Goolsbee lowered the probability of a December rate cut from 69.8% to 67.5%, further dampening market confidence.

The two reasons mentioned above, one a fundamental cause and the other a contributing factor, combined, led to a suppression of risky assets, especially Bitcoin, whose decline was more noticeable. The solution is simple: on the one hand, the government resumes operations; on the other hand, the Federal Reserve reduces the amount of overnight reverse repos to release some liquidity and alleviate short-term liquidity tensions.