The biggest problem in the crypto space right now is the lack of liquidity. Or rather, even if there is liquidity, market risk appetite has decreased. Wall Street may never blame Trump for pulling liquidity out of the market, and the truth behind the historic liquidation event on October 11 may never come to light. As of today, the crypto industry is once again being stigmatized. How can we prove our innocence? At the moment, it seems impossible. The market is looking forward to Walsh becoming the Fed Chair to stimulate the market, but that won’t happen until June. Plus, Walsh’s policy stance is rate cuts + balance sheet reduction. While rate cuts can boost risk appetite, balance sheet reduction simultaneously pulls liquidity out of the market, making it hard to say this is an absolute positive for the crypto space. Why is it that no support level seems to hold right now? Because during the U.S. government shutdown over the past few days, liquidity has dried up again. If Walsh becomes the Fed Chair, liquidity might get even worse. That said, we have to admit that after Wall Street entered the game, the composition of market participants has changed significantly. The bottom won’t be too low, but where exactly the market stabilizes depends on liquidity and the restoration of market confidence. Until then, it’s all about the two-way battle.