Recently, I've heard many voices saying that liquidity in the crypto circle is drying up, and many people directly blame traditional assets like gold and silver—thinking they are diverting funds. As long as these assets fall in price, money will naturally flow back. This logic sounds reasonable, but I always feel something is missing.

Have you ever thought that this situation is very similar to the phenomenon a few years ago during the pandemic? Back then, everyone was saying, "Once the pandemic is over, business will pick up." That sentence gave many people a reason to keep going. All the difficulties and losses were attributed to a single cause—the pandemic. The hope was that once it passed, things would improve.

And then? Things opened up. The economy did rebound for a while, but not long after, it sank into a deeper slump. Only then did people realize: without the pandemic as an obstacle, business still isn’t picking up. The "lifeline" that was hoped for three years ultimately failed to save anyone. Hope was lost, replaced by a more painful realization—the problem wasn’t there at all.

The same logic applies to the crypto world. The real culprit behind liquidity drying up isn’t necessarily that gold and silver are "sucking" funds away. More likely, the entire market’s risk appetite is shrinking, and investors’ confidence is gradually eroding. When you no longer believe in the idea that "once a certain event ends, the market will reverse," will you still blindly enter the market? No. You will choose to wait, to exit, or even to observe for a while longer. That’s where liquidity truly disappears—not because it’s been sucked away, but because it’s frozen.