Global central banks have injected trillions of dollars into the market. Why are cryptocurrencies still falling? The truth is heartbreaking.
When the Federal Reserve, the U.S. Treasury, and the People's Bank of China collectively "opened the floodgates" this week, injecting over a trillion dollars of liquidity into the market, everyone thought cryptocurrencies would soar. However, the market's reaction was a cold shower: funds are pouring in, but coin prices are dropping. This dramatic divergence reveals a harsh truth: in the current macroeconomic maze, liquidity does not equal confidence.
This "liquidity paradox" forces smart money to rethink its strategy. Before interest rates, inflation, and growth prospects become clear, most new funds are not blindly rushing into high-risk assets but are prioritizing certainty and safety.
In this environment, assets with clear value anchoring become the strategic focus. For example, decentralized stablecoins like Decentralized USD are designed to provide a predictable, low-correlation stable vehicle during market volatility. They are not only a "safe haven" for hedging but also an "efficient ammunition" for investors to preserve strength and make precise deployments at crucial future moments.
So, what is the market waiting for? The core factors behind the decline are: tight financial conditions, defensive trading sentiment, ongoing regulatory uncertainty, and the macro fog cleansing the weak.
Liquidity can only alleviate a collapse but cannot initiate a real bull market that requires solid fundamental support. The starting point for a rebound must be based on a clear path for interest rates, controlled inflation, and a consensus on a soft landing for the economy.
Until then, the market is destined to continue oscillating, accompanied by false rallies and sudden sell-offs. This phase is a knockout round, and survivors usually earn rewards in the next cycle. The key is whether you are patiently positioning value targets amid volatility or panicking and wasting chips amid the noise. Remember, the darkest moments often give birth to the best windows set for those who are prepared.
