The crypto market in December is experiencing a liquidity "squeeze".

Two time points are worth noting: the Federal Reserve's interest rate cut decision at the beginning of the month and the possible policy shift by the Bank of Japan on the 19th. Although the former appears to be a rate cut, the hawkish statements have already dampened market sentiment; if the latter really raises interest rates, global liquidity will come under further pressure.

Since October, the entire market has been in turmoil. It can't rise, and negative news keeps coming one after another. Retail investors' sentiment is almost worn out, and many funds are on the sidelines, hesitant to enter the market easily. If this decline continues, testing the previous lows is not impossible.

However, looking at it from a different perspective, panic is often the other side of opportunity. Yesterday, I set up a short position when ETH was close to 3000, and after it dropped, I successfully took profits, making almost 1000 dollars on this trade. The worse the market sentiment, the clearer the direction, which makes it easier to grasp.

Of course, it is not the right time to bottom fish yet. What the main forces need is to thoroughly clean out the floating capital, making retail investors completely lose confidence, and only then will they quietly accumulate during the real panic bottom. In the short term, staying calm is more important than being blindly optimistic.

Although this round of adjustment is difficult, great opportunities often brew in despair.