1. Today’s major events & market data
1. Brad Garlinghouse, CEO of Ripple Labs, posted on social media that "Ripple's stablecoin RLUSD has received final approval from the New York Department of Financial Services (NYDFS). When RLUSD is listed on the exchange, you will hear the news from Ripple first." To thank the community for their support during this challenging period, we will launch an airdrop of 100,000,000 $XRP.
2. According to voting results, Microsoft's major shareholders opposed the company's Bitcoin investment proposal on Tuesday.
Microsoft's board had earlier urged shareholders to reject a proposal from the National Center for Public Policy Research that the company invest 1% of its total assets in Bitcoin as a hedge against inflation.
At the annual meeting, MicroStrategy founder Michael Saylor gave a three-minute speech, attempting to persuade Microsoft shareholders to support this proposal. Data shows that institutional investors, including Vanguard and BlackRock, are the largest shareholders of Microsoft.
(Many people in the country predict that Microsoft will pass, indicating that it can only be referenced.)
3. Stablecoin issuer Tether announced that its USDT has been recognized as an 'Accepted Virtual Asset' (AVA) by the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA). This approval allows licensed entities operated by the FSRA to provide pre-approved services related to USD₮, enhancing the region's leadership in digital asset innovation.
This announcement comes at a time when the UAE's cryptocurrency adoption rate is rising, reflecting the country's active promotion of the integration of traditional and digital finance. The UAE Dirham is pegged to the US dollar, serving as a benchmark for global economic stability. Tether's USDT currently has a market capitalization exceeding $138 billion, making it the most widely used stablecoin globally, with over 400 million users utilizing USDT, providing a credible and efficient bridge between traditional fiat currency systems and the digital economy, complementing the UAE's stability.
Since 2022, the cryptocurrency adoption rate in the UAE has surged. The advanced regulatory framework has made cities like Abu Dhabi and Dubai leaders in global crypto innovation and blockchain technology, providing a fertile ground for the development of the digital asset ecosystem.
4. Binance's customer support department responded to user inquiries on social media, stating, 'Regarding the inscription market, it has been removed, and you cannot currently buy or sell inscription assets. However, you can still view your inscription assets in the inscription center and send them to other wallets. You can click 'See More' - 'Inscription' on the Web3 page to view your inscription assets.'
Earlier reports indicated that Binance announced the relaunch of the Binance Wallet (formerly 'Binance Web3 Wallet'), aimed at making Web3 more accessible, intuitive, and integrated into the daily lives of global users. This relaunch will occur in phases, with each phase introducing a unique theme to address key challenges in Web3 adoption, ensuring a smooth transition for users.
(Before Binance gives up, it must have undergone evaluation.)
5. The total net inflow for Bitcoin spot ETF yesterday was $479 million, continuing 8 days of net inflow; the total net inflow for Ethereum spot ETF yesterday was $150 million, continuing 11 days of net inflow. Early this morning, BlackRock's BTC ETF had a net inflow of $296 million, and the ETH ETF had a net inflow of $81 million.
(Again proves that the recent decline is partly due to long-term institutional funds selling off, such as the announcement from Meitu a few days ago, along with more hidden big players.)
3. Today's Market
Last night the market fell again, with BTC dropping to a low of 94,244 and ETH to a low of 3,515, marking the third decline in recent times. After two sharp price movements a few days ago, it indicates that some institutional funds have indeed chosen to exit. In the month since November 6, the capital for the rise has been well controlled, but now, with price divergence, it is clear that the market is no longer under control, entering a period of speculation.
Coinglass data shows that $630 million was liquidated across the network in the past 24 hours, with $476 million in long liquidations and $153 million in short liquidations. ETH saw liquidations of $105 million, exceeding BTC ($88.6154 million).
After consecutive liquidations of long positions, fewer people will dare to be bullish, ultimately forming a balance between bulls and bears. Today's Fear and Greed Index dropped to 74, changing from extreme greed to greed, indicating a cooling of market sentiment.
Although the market is currently declining, my view is that this is merely a normal and healthy adjustment. After 2-3 days of emotional repair, it will choose to rise again. The low point created by this decline, especially for altcoins, will look like a golden pit in hindsight. Of course, we cannot control short-term market trends; what we can do is prepare for various unexpected situations that may arise in the market.
The current response plan focuses on how to hedge against downward risks, which is an important strategy for protecting assets as uncertainty increases. Here are some common hedging methods:
1. Diversification
Method: Allocate funds to multiple asset classes, including traditional financial markets (such as stocks, bonds) or other crypto assets (such as GameFi projects, staking yield tokens).
Advantages: Reduces the impact of single market volatility on the overall investment portfolio.
Notes: Diversified assets should be chosen from projects with low correlation to avoid systemic market risks.
2. Increase Holding Income
Method: Deposit encrypted assets into staking or lending platforms (such as Aave, Compound) to earn interest income.
Advantages: Increases passive income during market downturns.
Notes: Be aware of the risks of smart contracts and liquidation on platforms.
3. Dollar-Cost Averaging Strategy
Method: Regularly purchase crypto assets in fixed amounts during market downturns to reduce average costs, provided that you do not fully invest.
Advantages: Suitable for long-term investors optimistic about the crypto market.
Notes: Requires strict adherence to plans to avoid emotional trading.
4. Shorting
Method: Short the market through futures contracts, perpetual contracts, or other derivatives (for example, Binance, OKX offer related functions).
Advantages: Profits when the market declines, hedging losses in spot assets.
Notes: Requires certain trading experience, and beware of the risks of forced liquidation due to high leverage.
5. Options Strategy
Method: Purchase put options to protect assets or sell call options to earn income.
Advantages: Fixed costs and limited risks, especially when purchasing put options.
Notes: The options market is not as liquid as the spot market, and understanding the options pricing mechanism is necessary.
6. Arbitrage Trading
Method: Utilize price differences between different exchanges to conduct cross-platform arbitrage.
Advantages: Market trends have a minimal impact on arbitrage profits.
Notes: Requires quick trading and sufficient capital; transaction fees and network delays may impact profits.
For example: Currently, there are significant price discrepancies on chain/Korean exchanges/other top exchanges, and many institutions and smart money may be arbitraging crazily (but be cautious, as the on-chain depth is relatively poor).
7. Preemptive Stop-Loss and Risk Management
Method: Set stop-loss points that automatically sell assets when prices fall to a specific level.
Advantages: Controls the range of losses.
Notes: Stop-loss points should be set based on your risk tolerance.
Summary
The choice of hedging strategy should be based on the investor's risk preferences, market analysis, and investment goals. For the risk of market decline, reasonable diversification, the use of derivative tools, and holding stablecoins are common and effective methods. In practice, combining multiple strategies can better help balance risk and return.
