Market analysts attribute today’s downturn to a combination of a liquidity squeeze and hawkish remarks from the Federal Reserve. Cato_KT on X platform highlighted that the auction of U.S. Treasury bonds, totaling $163 billion in 3-month and 6-month bonds, is a key driver of market turmoil. This move drained significant funds from financial markets and put pressure on prices of risk assets. Additionally, hawkish comments from Federal Reserve Governor Goolsbee led to decreased expectations for a December rate cut, dropping the probability from 69.8% to 67.5%, further exacerbating market uncertainty. These two factors have collectively suppressed risk assets, leading to significant declines in Bitcoin’s price. The solution involves government action and immediate Federal Reserve intervention by decreasing repurchase amounts in overnight reverse repos to alleviate liquidity strain.