2025-12-29 11:24:16

Market fluctuations are never a good time for panic.

Recently, with the market ups and downs, many new entrants can't sit still and are constantly wondering, "Is this bull market about to end?" But having navigated the crypto space for many years and gone through several complete cycles, my deepest understanding is: volatility is actually the norm for the market, and the real test is whether you can stay rational.

Not long ago, I was chatting with a seasoned trader, and he pointed to the chart and said indifferently, "Every big dip is actually an opportunity to switch chips; it's not a signal to panic and run away." I’ve remembered that sentence for a long time. Today, I want to start from the five most critical market signals right now and explain why I remain optimistic about the subsequent performance of this wave.

**Signal 1: Global liquidity is about to be unleashed**

The essence of financial markets is still a game of money. The recent news from the Federal Reserve is quite intriguing—quantitative tightening (QT) may end earlier than expected. In other words, the supply of funds in the market is about to increase in the opposite direction.

Historical patterns tell us that whenever major global central banks enter a rate-cut cycle, the market’s appetite for risk assets will significantly grow. As a typical risk asset, cryptocurrencies often perform well during periods of abundant liquidity.

**Signal 2: Regulatory landscape is being reshaped**

Looking back to last year, crypto regulation was still a fog. But now, it’s completely different. The U.S. Congress passed the CLARITY Act, which directly weakens the SEC’s control over crypto assets—this is a substantial institutional change. Meanwhile, the current government is also pushing forward plans to make Bitcoin a strategic reserve asset.

Deeper changes lie in the shift from "punishing after the fact" to "legislating in advance." This is not just about easing restrictions but fundamentally clarifying industry rules. For the entire ecosystem, this is a clear positive signal.

BTC-0.38%

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ZeroRushCaptain

· 5h ago

Ha, sounds nice, but aren't they all dead here? I am the living reverse indicator.

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UnluckyLemur

· 5h ago

Here comes the moral lecture again... But to be honest, I'm already numb to the "swap chips" argument. I believe in liquidity, but when it comes to actually throwing money in, I still get scared. How about you guys?

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OnchainHolmes

· 5h ago

A sharp drop is actually accumulation; there's really no mistake in that, experienced traders do this all the time.

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GasFeeGazer

· 5h ago

The hands that are bottom fishing are already trembling, what are you still waiting for? --- Newbies always call for cutting losses every time it drops, why can't they learn? --- I really don't understand, liquidity is coming, and you're still lying flat? --- Regulatory good news can't shake you? Fine, then I'll buy your chips. --- It's always like this, shouting there's no hope during big drops, and regretting not bottom fishing when it rises. --- You're right, but on the other hand, could this time really be different? --- The Federal Reserve is about to loosen monetary policy, and some are still bearish? Wake up, everyone. --- Top influencers are optimistic about the second half, but I just wonder why it still feels empty? --- Wait, can the CLARITY Act really change the game like this? Need to verify. --- The biggest fear in the crypto circle is hearing too many stories; no one expected it to turn out like this last year. --- Basically, it's time to get on board again.

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Fren_Not_Food

· 5h ago

A big drop is actually a buying opportunity, there's really no doubt about that. What are newbies panicking about? --- It's the Federal Reserve and regulations again. Honestly, the crypto world is all about money and policies. --- Every cycle is shouted as "it's the end," but what happens? It still rises as usual. --- QT ending + interest rate cut cycle, this combo is truly a spring breeze for crypto. --- Basically, don't be scared out. The big players have already been accumulating, so what are you hesitating for? --- The CLARITY Act was really key, essentially reducing SEC's authority. Think about what that means. --- A veteran trader's words are spot on: the phrase "opportunity to switch chips" is used perfectly. --- When liquidity loosens, all risk assets become active. Bitcoin definitely won't fall behind. --- From "post-event penalties" to "pre-legislation," this is a real attitude shift. --- What are you afraid of? History has taught us: big drops are always buying points.

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SchrodingerWallet

· 5h ago

This wave of liquidity release + regulatory easing, to be honest, is quite something, but we still need to see if it can really be implemented later on...

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GweiObserver

· 5h ago

Liquidity release + regulatory friendliness, this wave is indeed a bit different... But to be honest, can the CLARITY Act really change the game? It still depends on how the implementation goes later.

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