How much did your account go into the red during that plunge yesterday? As soon as the Nasdaq opened, it tanked, and the major crypto assets followed suit, causing chaos in the group chat. A lot of people blamed a sudden black swan event, but to be honest—this time, you really can’t blame it on a black swan.

Anyone who keeps an eye on capital flows knows that the seeds for this crash were sown long ago. At its core, it was a liquidity drain: with no money left to catch the falling knife, prices naturally dropped. How did the liquidity get drained? Three simultaneous moves.

**First blow: Treasury issuance hijacks the market**

The government has been busy lately, rolling out a $163 billion Treasury plan. Don’t underestimate that number—institutions are ultra-sensitive to this stuff. Treasuries offer stable and safe returns, so big money immediately pulled out of risk assets to snap them up. The inflows that could have propped up the stock and crypto markets all rushed to fill the Treasury gap. The market is starved for capital—how could it not drop?

**Second blow: The Fed’s sudden attitude shift**

The market had been betting on a rate cut, with a lot of people leveraging up to gamble on a rebound. But then the Fed suddenly said, “No rush to cut rates,” killing those expectations instantly. A delayed rate cut means financing costs won’t come down, so the high-leverage money panicked right away—