$BTC The decline is more like a deterioration in marginal liquidity that causes funds to shift from "adding positions" to "preserving capital." In "preservation mode," institutions are not "bearish and exiting," but rather "first reducing risk exposure," with "position structure + risk control mechanisms" playing a role.

Therefore, returning to the original question "Did American institutions run out of money, causing the decline?" — a more accurate way to put it is that it is not the lack of funds in institutions that caused the decline, but rather that the cash ratio of institutions is too low and the market as a whole is fully leveraged, leading to extreme sensitivity to any fluctuations. Once high-volatility events like earnings seasons occur, the market shifts from relying on incremental capital to drive gains to relying on passive selling to drive declines.