Global geopolitical turmoil triggers fluctuations in the crypto market

Recently, the international situation has been complex and changeable, and the global economy is facing many challenges. The radical policies of some national leaders have triggered severe fluctuations in the market, and the crypto market has not been spared.

Trade Friction Escalation

A leader of a certain country recently announced a series of radical tariff policies, triggering severe turmoil in the global financial markets. The combination of macroeconomic headwinds and a liquidity crisis has led to panic selling in the crypto market, resulting in heavy losses for bullish forces. This storm triggered by policy once again tests the risk resistance capability of the crypto market.

Some analyses suggest that extreme trade protectionist policies are driven by certain non-mainstream economists. Although these policies may yield some effects in the short term, it remains to be seen whether they are worthwhile in the long run.

Strategies for the Crypto Industry

In the face of unfavorable circumstances, the encryption industry is actively seeking countermeasures. Some believe that mining machine manufacturers can study and utilize relevant regulations to produce equipment that meets the conditions for tariff exemptions, while also paying attention to the second-hand mining machine market. At the same time, reducing positions and maintaining liquidity are also good options.

The CEO of a trading platform publicly analyzed for the first time the bottlenecks and community disputes faced by the platform during a community dialogue in Hong Kong. He emphasized that "quick money and slow money need to be balanced", pointing out a survival path for investors that coexists with risks and opportunities.

Market Trend Analysis

Looking back at historical data, since 2018, the crypto market has experienced a total of 239 "extreme fear" moments. Analysts compared the Federal Reserve's 10-year interest rate cycle and projected the possible trends of Bitcoin under different scenarios.

Despite the significant uncertainties in the short term, institutional investors generally believe that now is a key time to reconfigure assets and position themselves for a new upward cycle. Some VCs are betting on specific types of projects, such as AI and emerging fields like SocialFi.

New Trends in the Industry

At the Web3 Carnival held in Hong Kong, several innovative projects were showcased. Industry insiders believe that products and services that can truly address user needs are the best tools to combat market cycles.

In addition, new applications of AI such as Memeapp are beginning to emerge and may become a new trend for the combination of crypto and AI. In the NFT field, more equitable token issuance platforms have also appeared.

Regulation and Policy

The Ministry of Justice of a certain country has revoked the cryptocurrency department, which may indicate a further relaxation of regulations on digital assets. Meanwhile, the SEC has approved options trading for Ethereum spot ETFs, involving products from several well-known institutions.

A large bank predicts that Bitcoin, as a tariff risk hedging tool, may rebound to the level of $84,000. Another exchange indicated that Bitcoin may further decouple from stocks and regain its position as the leader of global risk assets.

Overall, despite the numerous challenges the current market faces, the encryption industry continues to innovate and develop. In the long term, the future of decentralized finance remains hopeful.