In the past month, central banks around the world have been taking frequent actions. The Bank of Japan raised interest rates in December, reaching a 30-year high—this is not an isolated incident but a signal of the global shift from easing to tightening.

According to the latest data from the OECD, the major economies around the world are nearing the end of interest rate cuts. The Federal Reserve is estimated to only cut rates twice more by the end of 2026, while the Eurozone and Canada have basically no room for rate cuts, and countries like Japan and the UK are gradually tightening. In other words, the era of low-cost funds that has been thriving over the past few years is coming to an end.

Returning to the performance of the crypto market and the stock market, this recent rebound looks good, but in this larger context, it is actually like "false prosperity." The tightening of global liquidity has become a foregone conclusion, and the overall market valuation will eventually adjust downward; a temporary rebound cannot change this long-term trend. Instead of chasing after the rise, it is better to moderately reduce positions during the rebound window.

The key is to have a sense of rhythm. It's not about cutting everything at once, but rather choosing based on your own sectors and gradually reducing risk positions in an orderly manner. Especially for those sectors that are already overvalued and have seen significant gains earlier, it is more important to consider reducing positions first. If you don't act now, and wait for the adjustment to come before passively cutting, the costs will be higher.