In December, the crypto market experienced significant fluctuations, with Bitcoin falling by 5% within 3 hours, causing many retail investors to panic. However, a calm analysis reveals that there are clues behind this round of decline.

The hawkish statements from the Bank of Japan have triggered a chain reaction in the Asia-Pacific stock markets, and various rumors about the Federal Reserve Chairman flying around on social media have indeed impacted market sentiment. However, what is truly noteworthy is that on November 28, the People's Bank of China reiterated its policies regarding virtual currency, and such statements are often used by major funds to create short-term fluctuations.

Interestingly, the expectations of interest rate hikes in Japan have actually been reflected in the prices for a long time. When the market is bombarded with various news, it tends to overlook the real fundamentals — the technological upgrade of Ethereum 2.0 is continuously progressing, and the scale of Bitcoin ETFs is still expanding. These are the hard logics that support long-term value.

Retail investors are most prone to making mistakes during such times by being led around by short-term news. The market always nurtures opportunities in panic and buries risks in frenzy. Instead of anxiously staring at real-time candlestick charts, it is better to focus on things that won't change due to a small article — the progress of technological iteration, the real movements of institutional funds, and the long-term trends of regulatory policies.

Fluctuation is the norm, but the direction is determined by value. This adjustment may be a good time to reassess investment logic.