The "return of funds" and the "loss of liquidity": the dual logic behind the big dump of virtual money.

Recently, the virtual money market has experienced a new round of severe fluctuations, with the prices of major coins such as Bitcoin and Ethereum plunging significantly in a short period of time. Many investors are exclaiming, "The bear market is back." This big dump is not triggered by a single factor, but is the result of the combined effects of a shift in macro policies, adjustments in capital flows, and the shrinking liquidity of the market itself, among which the "homecoming effect" of funds brought about by the easing of China-U.S. trade tensions is particularly crucial.
The phased easing of Sino-U.S. trade frictions has become a core variable in driving the flow of funds. With both parties signing a one-year trade easing agreement, the focus of economic policies in both countries has clearly shifted towards "deepening the domestic market." For the United States, after the end of trade frictions, the policy dividends from the Federal Reserve's cessation of quantitative tightening will tilt more towards the recovery of domestic manufacturing and boosting the stock market; China, on the other hand, focuses on consumption stimulation and upgrading the real economy, with a series of stable growth policies continuously releasing market potential. In this macro background, large funds that previously flowed into the virtual money market due to safe-haven demand or profit-seeking impulses are beginning to reassess their asset allocation logic—compared to the highly volatile cryptocurrencies, traditional mainstream assets such as stocks and bonds, which have a clear recovery momentum, obviously better meet the demand for "safety net + stable returns." This directly triggered a wave of capital withdrawal from the virtual money market.

The "reflow" of funds is not simply a withdrawal, but rather reflects the characteristics of structured adjustment. Some risk-averse funds seek a smooth transition and have not completely exited the risk asset domain, but instead choose to enter the spot market in batches.