The U.S. inflation numbers have started to behave erratically again, while across the Pacific, the Bank of Japan is brewing interest rate hikes - these two opposing forces are colliding, tightening the nerves of global capital.

The question arises: what does this have to do with the crypto assets in our hands?

The relationship is not insignificant. The money in traditional financial markets is already connected to the crypto world. Once the USD policy and the JPY policy go head-to-head, those global funds engaging in carry trades will have to find a new direction. As liquidity tightens, risk appetite will decline, the stock market will tremble, the bond market will tremble, and the cryptocurrency market? It won't escape either. Short-term volatility is almost inevitable.

So how should we respond? My own idea is like this:

First, don't follow the market sentiment blindly. Chasing when prices rise and panicking when they fall is the easiest pit for retail investors to fall into.

Second, position control is always more important than predicting price fluctuations. Going all in is especially dangerous at times like this.

Third, for the truly promising assets, don't be easily scared away by short-term fluctuations. Every pressure test in the market is actually a screening process—screening projects and also screening investors.

I think this is a good opportunity to test one's investment logic. Resilient projects will prove themselves, and what we can do is to maintain our mindset, find opportunities in the fluctuations, rather than being led by the fluctuations.

The greater the wind and waves, the more one must hold onto their own ship—this saying may be clichéd, but it gets validated every time the market is turbulent.