Recently, I saw trading data showing that US unemployment rates continue to decline, and market traders' reaction was direct — they significantly increased bets that the Federal Reserve will pause its rate-cutting cycle. When this news came out, everyone in crypto could feel the pressure.
The performance of BTC and ETH over the past couple of days says it all. It dropped directly from 92,000 to 89,000, and while the decline doesn't look that large on the surface, the logic behind it is more frightening. What does it mean if rates don't come down? The opportunity cost of holding crypto assets with no cash flows skyrockets. Think about it — why take the risk trading coins when you can just buy US Treasuries and collect the interest? Institutions already smelled this opportunity, and spot ETFs have seen consecutive net outflows. This is real money withdrawing.
I've seen countless cases of friends trading futures getting liquidated these past couple of days — this is a true reflection of liquidity drying up. Market trading volume has collapsed, the Fear and Greed Index is still hovering in the fear zone, and new capital is basically nowhere to be seen. The entire market is like a deflated balloon.
In the short term, it's just a picture of oscillating downward movement. My advice is simple: don't chase these opportunities — it's just wasting on fees and emotions. If you hold mainstream coins, one option is to participate in staking to earn some interest as a hedge, and another option is dollar-cost averaging to bring down your cost basis. The key is to endure and wait for the moment when the Fed's stance truly shifts. Frequent trading right now is just pure money-burning.
Recently, I saw trading data showing that US unemployment rates continue to decline, and market traders' reaction was direct — they significantly increased bets that the Federal Reserve will pause its rate-cutting cycle. When this news came out, everyone in crypto could feel the pressure.
The performance of BTC and ETH over the past couple of days says it all. It dropped directly from 92,000 to 89,000, and while the decline doesn't look that large on the surface, the logic behind it is more frightening. What does it mean if rates don't come down? The opportunity cost of holding crypto assets with no cash flows skyrockets. Think about it — why take the risk trading coins when you can just buy US Treasuries and collect the interest? Institutions already smelled this opportunity, and spot ETFs have seen consecutive net outflows. This is real money withdrawing.
I've seen countless cases of friends trading futures getting liquidated these past couple of days — this is a true reflection of liquidity drying up. Market trading volume has collapsed, the Fear and Greed Index is still hovering in the fear zone, and new capital is basically nowhere to be seen. The entire market is like a deflated balloon.
In the short term, it's just a picture of oscillating downward movement. My advice is simple: don't chase these opportunities — it's just wasting on fees and emotions. If you hold mainstream coins, one option is to participate in staking to earn some interest as a hedge, and another option is dollar-cost averaging to bring down your cost basis. The key is to endure and wait for the moment when the Fed's stance truly shifts. Frequent trading right now is just pure money-burning.