The recent market really knows how to 'play with emotions'! As soon as the news of the sharp drop in the interest rate hike probability in January came out, some were overjoyed thinking there would be easing, while others panicked, worried about an economic collapse. The crypto market was jumping around, leaving retail investors dizzy. As a seasoned crypto analyst, I want to tell everyone: don't be swayed by emotions; understand the underlying logic to remain undefeated in the market!
Let me first clarify the core logic: the rise and fall of the crypto market is essentially a game of 'liquidity expectations' and 'risk appetite.' Now that the interest rate hike probability has plummeted, the core impact is on 'liquidity expectations'—the market originally expected easing signals in January, but now that expectation has failed, the situation of tight liquidity will continue, hence the market will decline. This is the underlying logic; once you understand this, you won't be confused by short-term fluctuations.
Let’s share some solid insights: why I always say that the 'prolonged high-interest rate battle' is a test for the crypto market but not the end of the world? Because the long-term trend of the crypto market depends on technological innovation and application implementation, rather than short-term liquidity. Although short-term financial tightness can suppress prices, projects with actual value, such as ETH's Layer 2 ecosystem and XRP's cross-border payment applications, will not disappear due to high interest rates. On the contrary, a short-term decline will eliminate bubbles and highlight the value of quality projects.
The warning from former White House economic advisor Hassett is actually a reminder to the market: the Federal Reserve's policies have a lagging effect, and not lowering interest rates now may lead to greater costs in the future. For crypto investors, this means we need to prepare for a 'long-term battle' and also stay alert to the suddenness of 'policy shifts.' My strategy is: allocate 60% of funds to quality mainstream cryptocurrencies for long-term holding; use 30% of funds to invest in potential altcoins, increasing positions on dips; and the remaining 10% of funds to participate in short-term hot trends, such as the recent Musk-themed small cryptocurrencies, taking profits quickly without getting attached.
Speaking of Musk-themed small cryptocurrencies, I must remind you: these types of coins are purely speculative with no fundamental support. In a low Gas environment, they are easy to pump but also prone to crash. Newcomers should avoid them, while experienced players can experiment with small amounts, but never invest their entire fortune.
The market is never short of opportunities; what’s lacking is the vision to spot them and a calm mindset. I will continue to break down the underlying logic of the market and share my investment strategies and target analyses. Follow me to transform from a 'follower trading stocks blindly' to a 'master who understands the market,' and steadily make profits in the crypto market! Follow me@链上标哥 , don’t get lost!
