Every year at the end of the year, traditional financial markets collectively enter a "holiday mode" — US stocks, European stocks, and Hong Kong stocks either suspend trading or close early. This phenomenon has become a routine operation in the financial circle. However, many people fail to realize that this seemingly "pause" period has a much deeper impact on the crypto market than imagined.

The crypto market is no longer an isolated island operating independently. Traditional institutional funds now account for over 40%. When the stock market falls into a trading vacuum, the withdrawal of this capital directly impacts the liquidity of crypto assets. In other words, the smaller price fluctuations and decreased trading volume you see are driven by this logic.

Having understood the reason, the key is how to respond. The first trap to avoid is false breakouts under low liquidity. During market closures, order books are thin, and small buy or sell orders can be amplified into "significant breakthroughs" or "rapid declines." Traders chasing the market often end up as the bagholders. The safe approach is to reduce positions, keep only core holdings, and observe the remaining funds.

The second opportunity lies in Asia. The closure of Western markets means trading activity shifts eastward, and the proportion of transactions in Asian markets will significantly increase. At this time, paying attention to the movements of mainstream Asian coins and exchanges becomes an essential lesson for investors.

The third perspective is long-term planning. Although short-term volatility diminishes, this is precisely a good time to avoid emotional interference and calmly analyze fundamentals. Investors with ideas can fully reassess their holdings and adjust strategies during this window.