Current Signs of Five Major Crises in the Financial Market

We cannot be overly optimistic; investment must consider risks. What are the current risks:

(1) Central Bank Policy Dilemma:

After ten years of quantitative easing and pandemic debt accumulation, global central banks are unable to implement further easing policies. The Federal Reserve is estimated to only lower interest rates next year, with current rates reaching 4.5%. If the central bank does not print money, there will be no money in the market to buy coins, and the cryptocurrency market will be poor.

(2) The Return of Inflation:

The reversal of globalization and protectionism is destroying supply chain stability. Trump's tariff policies and the rise of the European right are both anti-globalization. Everyday items are becoming more expensive for the public, leading central banks to hesitate on lowering interest rates, resulting in no improvement in the cryptocurrency market.

(3) Geopolitical Conflicts:

Direct threats to asset safety.

Iran and Israel, Russia and Ukraine could potentially trigger a third world war, and nuclear weapons might be ignited again, which cannot be ignored. The cryptocurrency market is a risky asset market; when the cannon fires, gold will soar, and the cryptocurrency market will decline, potentially leaving BTC unstable.

(4) U.S. Stock Market Bubble:

The U.S. stock market, which accounts for two-thirds of global market value, is at a historical high valuation. The U.S. stock market has risen for ten years, with AI breakthroughs pushing it to continue rising sharply. However, if there is a 20% correction, like in March-April, BTC will also be affected.

(5) Trump Risk:

The world's largest economy, the United States, is being controlled by the unpredictable captain Trump, whose irrational behavior continues to provoke violent market fluctuations.

Investment Advice:

Everything has two sides; on one hand, policies are favorable for the cryptocurrency market, and on the other hand, macro factors are unfavorable for it. Acknowledge the risks, do not go all in; invest with spare money, maintain a large position in BTC to hedge against risks, and reduce altcoin positions.