[Analysis: Market Liquidity Increasingly Scarce, Recovery Still Requires Consolidation Period] BlockBeats News, November 5, CryptoQuant analyst Axel stated in an article that, from a momentum perspective, the market will begin attempting a rebound. In addition, a large number of short positions have accumulated, which could serve as the driving force for the rebound. From a technical standpoint, the market is already oversold, but history shows that recovery typically requires a period of consolidation. The deterioration of risk appetite is closely related to the increasingly scarce market liquidity. The U.S. government shutdown has led to significant cuts in budget spending, while tax collection and treasury bond issuance continue as usual. These factors have collectively caused a substantial contraction in the financial system's liquidity.