The probability of a U.S. government shutdown has risen to 75%, which is a significant liquidity crisis. Historically, government shutdowns have led to billions of dollars being stranded, and if negotiations fail this time, liquidity exhaustion will directly hit the cryptocurrency market, which is highly sensitive to funding. 🤔😕

In addition to the shutdown crisis, yen intervention and whale sell-offs of ETH are also happening simultaneously. There are three major events you must know this week～

The countdown to the government shutdown is on. The liquidity crisis is not an exaggeration. This Friday, January 30, is the deadline. Currently, the Democratic and Republican parties have completely broken down negotiations over ICE immigration enforcement funding, with the shutdown probability reaching 75%. For the cryptocurrency space, political struggles are not the main concern; what matters is money. Looking back at history, the shutdown during Trump's previous term resulted in hundreds of billions of dollars in government spending being stranded, causing the market to lose the expected liquidity injection. For assets like Bitcoin, which are extremely sensitive to U.S. dollar liquidity, once the faucet is turned off, prices often crash first!

This will also impede regulatory legislation. If the government shuts down, the clear regulatory framework for cryptocurrencies will likely be scrapped. Traditional financial institutions have been waiting for this regulatory green light to enter the market. At this critical moment, the lack of regulatory clarity is undoubtedly a bearish signal! The Bank of Japan's intervention may be the most complex signal; to save the yen, Japanese authorities are preparing to intervene in the exchange rate. During the last yen intervention, the market experienced a wave of panic selling due to enormous uncertainty, with Bitcoin plummeting by 29%, only to then see a 100% violent rebound!!