**Key Point:** The price linkage between the US stock market and the crypto world is essentially a technical resonance phenomenon caused by algorithmic trading treating Bitcoin as a "barometer of sentiment." When liquidity tightens, this resonance is sharply amplified, leading to a chain reaction.

**The Strange Scene at the End of Last Year:** When Bitcoin broke through the key psychological level of $90,000, tech stocks plunged along with it, and the Nasdaq index shifted from gains to losses. It seems contradictory, but there is an underlying logic. Research from multiple investment institutions shows that algorithmic traders are using Bitcoin as a "weather vane" and "leading indicator" of speculative trends. Humans can recognize patterns, but algorithms won't miss them; they automatically place orders based on these patterns, regardless of whether the logic itself is reliable. As a result, behaviors at the algorithmic level gradually converge, completely rewriting the way prices are transmitted between traditional assets and crypto assets.

**Liquidity Spiral is the Hidden Driver:** The real trouble comes from leverage liquidations. In mid-October last year, over $19 billion in leveraged positions in the crypto market were forcibly liquidated, a rare shock in history. The consequences were severe—market makers (the "quasi-central banks" of the industry) saw their balance sheets directly impacted, prompting them to instinctively tighten liquidity and sell assets. It’s like knocking over dominoes: crypto prices crash → institutions sell stocks to cover margins → market panic spreads. Liquidity becomes increasingly scarce, and price volatility intensifies. This is not just a crypto market issue but a gradual release of systemic interconnected risk across the entire market.