The market atmosphere doesn’t feel right this week.

Next week, a big move is coming—a $125 billion US Treasury auction, together with $40 billion in corporate bonds. And it just happens to coincide with a holiday, which means shorter trading hours and already tight liquidity getting even tighter. A lot of people are starting to panic, especially those who just entered the market recently.

Let’s keep it simple and skip the jargon.

Think of the financial market as a big reservoir. Stocks, bonds, and crypto are all tributaries in this reservoir, sharing the same pool of water—that is, market liquidity. The water level is already low, and next week’s bond auction is like drawing out another huge chunk. With less water, all the tributaries are affected, risk resistance drops, and volatility naturally increases.

Some might think: “This is about US stocks and bonds—what does it have to do with the crypto market?”

It matters a lot.

Today’s crypto market is no longer a small, isolated circle. Institutional money moves rapidly between different markets, chasing wherever there are predictable returns. When traditional markets tighten up, funds immediately pull out of high-risk assets. And the crypto market is exactly that—high-volatility, high-risk. When liquidity gets squeezed, the reaction here is even more intense than in the stock market.

So this move next week definitely won’t only impact the bond market. Crypto market volatility could be much fiercer than you expect.

How to deal with it specifically? I’ll go into details later. But the core logic is simple: when liquidity tightens, don’t go head-to-head with the market.