Recently, the latest statements from Fed officials have attracted a lot of follow. The core message is actually quite straightforward: on one hand, the inflation data for November may be underestimated by the market, and the actual neutral interest rate level will be higher than expected; on the other hand, the Fed has prioritized controlling inflation and intends to maintain the current high interest rate levels until spring next year.



In other words, the probability of a rate cut in the short term is almost zero, and this environment of high interest rates will have to be endured for a while longer.

What does this mean for the crypto market? The intuitive impact is that the influx of traditional funds will be dragged down, and the market is likely to experience fluctuations and corrections. However, it should be noted that the trends in the crypto world have never simply followed the rhythm of the Fed. The progress of blockchain technology itself and the implementation of application ecosystems are the key factors that determine a long-term bull market. Short-term policy fluctuations are just an episode.

What operations are safe? It depends on your own risk preference.

If you are a conservative investor, you might consider moderately reducing your position and allocating a portion of your funds to stablecoins like USDT to calm your mindset. Wait until the market signals are clearer before taking action.

If you have confidence in the long-term market and enough courage, then you need to have sufficient determination. Gradually allocate mainstream coins or potential projects you are optimistic about during dips; corrections are essentially opportunities to buy in at lower prices. The key is not to chase highs excessively, nor to go all in.

Market fluctuations are like a touchstone, revealing everyone's mindset and strategy. Those who can truly laugh last are often those who can both macro insight into policy trends and micro grasp the operational rhythm. Learning to respond calmly is the key to seizing opportunities in this market trend.
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