Analyst: The main reason for the weekend drop in Bitcoin is liquidity tightening.

Bitcoin fell to a six-month low over the weekend, mainly due to a tightening of liquidity, but analysts remain optimistic about a potential reversal. Derek Lim, research director at Caladan, said, "In my view, the main driving force of the market is still liquidity. The temporary tightening of liquidity is due to the US government shutdown raising the general account balance of the Treasury Department, and it will continue to be tight." Lim expects this headwind to dissipate in the short term as the government resumes spending and delays payments are processed, injecting liquidity back into the system. The analyst also noted that Japan's current discussion of a 17 trillion stimulus plan may further boost global liquidity in the future. "Ultimately, this retracement reflects fund strain and changes in interest rate expectations, rather than the collapse of cryptocurrency fundamentals," said Edward Carroll, market director at MHC Digital Group. "Once the liquidity cycle reverses, we expect digital assets to rebound first, as they have after major interventions in the past decade."