Through wind and rain, the truth is revealed - Rationally view the recent fluctuations in the cryptocurrency market

In the past week, the cryptocurrency market has experienced severe turbulence 😱, with prices of major assets like Bitcoin and Ethereum plummeting, and the total liquidation volume across the network surging, creating a climate of panic. This 'black swan' adjustment caught investors off guard and once again demonstrated its high volatility and cyclicality.

Why the decline? Multiple factors resonating 🤔

Macroeconomic pressure: Under global inflation and expectations of interest rate hikes by the Federal Reserve, risk assets are being sold off, and cryptocurrencies are no exception.

Leverage clearing: Excessive leveraged speculation has been liquidated amid the volatility, leading to a 'chain reaction'.

Regulatory ambiguity: Policies tightening in some countries and frequent negative events have intensified risk-averse sentiment.

History doesn’t repeat itself, but it does rhyme 📜

Looking back at the crypto world, the bear market of 2018 saw a decline of over 80%, and the '312' incident in 2020 led to a halving in a single day. Each deep squat is preparation for a stronger rebound. The market moves from prosperity to regression, filtering out the false to reveal the true. Projects with technology, ecology, and consensus will stand out 🌟.

Advice for investors 💡

- Stay calm, reject FUD: Emotional trading can lead to losses; avoid chasing highs and panic selling.

- Review holdings: Distinguish between short-term speculation and long-term value, clarify goals amidst volatility.

- Control risks: Avoid high leverage, allocate reasonably, and maintain cash flow for extreme situations.

- Focus on fundamentals: Innovations in Layer2, DeFi, NFTs, etc., continue to emerge, with potential opportunities post-repair.

Outlook: After darkness, dawn will come 🌅

Short-term pain is inevitable, but the potential of blockchain remains. Institutional entry, regulatory progress, and the explosion of Web3 indicate a clear long-term trend. The market needs time to digest the bubble, and investors need patience and wisdom.

Risk warning ⚠️

Cryptocurrency is highly risky; this article is not investment advice. Make decisions based on your risk tolerance, respect the market, and act within your means.

Bull markets are born in pessimism, grow in skepticism, and die in euphoria.

- A reminder to all who persevere through cycles 🤝.