The recent drop in the cryptocurrency market is caused by the aftershocks from October 11 and the anticipated tightening of liquidity. The current price already reflects no interest rate cuts until December.
The disaster-level event in the cryptocurrency market on October 11 led to multiple stablecoins decoupling, and many stablecoin pools have encountered issues.
Yesterday, I saw that the usdJ of Sun Ge's project has decoupled, and 1 USDJ can only be exchanged for 0.45 USDT. I really can’t understand why some people would want to take advantage of Sun Ge.
When the market is good, everyone makes money, and when liquidity is abundant, the interest from staking stablecoins is quite comfortable. Recently, the market has been bad, and the October 11 event caused significant losses. This has led to stablecoin pools facing one blow-up after another, with some traders losing money and others being hacked. In any case, it’s better to avoid staking stablecoins recently and securely hold onto your USDC and USDT.
In the recent panic market of the crypto world, long-term holders can buy slowly, while short-term traders can wait to see if macro news is dovish or hawkish.
My own opinion is that interest rates will eventually have to drop. U.S. mortgage rates have reached 6%, and credit card default rates are also very high. Maintaining high rates indefinitely is unreasonable. If interest rates drop next year, I believe the U.S. stock market will recover, and the crypto market will also come back.
If you have USDT and want to buy the dip, I think the current situation for dual currency winning is very good; the buying interest at 86,000 has already reached 25%.
If you buy BTC at 86,000, I don't think you will lose for long. If you can't buy in, getting a 25% annualized return is still attractive; it's much better than staking stablecoins for a 5-10% return. The main risk is in staking; if it collapses, you lose everything.
If there is no risk, then staking for 5-10% is certainly good, but where in the world is there such a thing as no risk?
If you bought Bitcoin at 86,000, and the crypto world continues to drop to 50,000, it hasn't really dropped much.
If it rises later, the next wave might go to 150,000.
People usually understand the crypto world as three years of bear market and one year of bull market. In fact, there is only one year of bear market and three years of bull market.
If it's a bear market now, you might hold on for a year or more after buying in. So what if it drops to 50,000?
Enduring floating losses is something that crypto traders should accept.
Also, pay very close attention to position management. No matter how good the market is, don't go all in with leverage; I suggest always maintaining an 8:2 allocation.
80% in coins, 20% in USDT. When it gets to the late stage of the bull market, if the coins have risen a lot, you will automatically sell and convert to USDT.
Prepare your living expenses outside the market, and you still have 20% to invest for cash flow; I think you will be very calm.
What panic emotions, what bear market, you can get through it.
If you go all in without regard for position management, it feels great when making money, but after a few crashes, you will feel anxious.
If you panic, you might sell, and then it goes up again, and it has nothing to do with you anymore. This kind of regret will deeply affect your soul.
I believe many people have experienced this kind of regret, and even if it drops back next time, you will be afraid of a continuous decline that you won't dare to buy in.
It just means you will always miss out.