Bitcoin experienced a 33% drop on October 10, 2025, attributed to a significant decline in global liquidity rather than the various narratives circulating at the time. This liquidity decrease was closely linked to the U.S. Treasury General Account (TGA) rebuild during the federal government’s record 43-day shutdown, which began on October 1, 2025. As the Treasury issued debt and accumulated cash, surpassing $1 trillion by late October, market liquidity was drained, tightening financial conditions and affecting risk assets, including cryptocurrencies and tech stocks. This situation was exacerbated by external factors, but the core issue was the liquidity vacuum created by the TGA-related actions.
TGA-driven liquidity drain blamed for Bitcoin’s 33% drop on October 10, 2025
