Staring at the market data with trembling hands, even drinking water feels like a chore—this is likely the situation for many people right now.

Last night, Bitcoin broke the $90,000 mark, and social media was immediately flooded with "cutting losses and running away" and "the bear market has arrived." Seeing these voices, I am reminded of a similar scene three years ago. Back then, like many friends now, I was constantly held hostage by news, and chasing rises and falls became a daily routine.

But the market has taught me one truth: information is always a follower of market data, not a leader. A real reversal often quietly starts when everyone is at their most despairing.

**The Real Opportunity Hidden Under Panic**

The recent decline of Bitcoin has indeed been harsh. From the historical high of $126,000 to now, in just a month and a half, it has dropped nearly 30%, wiping out all gains from the beginning of 2025.

Market sentiment is clearly reflected in the data: the Fear and Greed Index has fallen from the "Greed" zone into the "Neutral" zone, and people's confidence is rapidly dissipating. In the past week, the selling volume from long-term holders has even reached a new high for the year; this kind of sell-off usually signifies something, and experienced traders are well aware of it.

But the contradiction here is that when everyone is selling and conceding defeat, it is often the time when the market is most likely to rebound. I have seen too many investors make life-changing decisions in such extreme emotions, and I have also heard many stories of people who gritted their teeth and held on, only to turn the tables later.

**The shift in liquidity is the true driving force behind the scenes**

The core driver of this round of decline is not complicated: the rapid shift in expectations for US dollar liquidity. After the latest signals from the Federal Reserve indicated a hawkish stance, liquidity in the market began to tighten significantly, which directly impacted the cryptocurrency market that relies on liquidity.