To Understand What’s Happening, You Must First Understand the U.S. Financial System. The recent crash in Bitcoin and Ethereum cannot be explained by sentiment alone. To truly understand what’s happening, you have to understand the mechanics of the U.S. financial system—especially the relationship between the Treasury market and the repo market. Modern finance revolves around U.S. Treasuries. They function as a substitute for deposits, the backbone of dollar liquidity, and the