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Have you noticed that the market atmosphere has become a bit subtle recently?
Just when we were celebrating the expectations of interest rate cuts, we heard that the Federal Reserve might start tapering. It's said that Powell's side is already seriously discussing this matter—first flooding the market to push asset prices up, and now quietly preparing to tighten the faucet. This tactic is actually quite old, but it works every time.
The problem is that tapering is much harsher than simply raising interest rates.
Looking back at historical data, every time liquidity tightens, Bitcoin is basically the first to be hit. Positions with high leverage often have to be forcibly liquidated within 24 hours. Market sentiment? It can collapse at any moment.
However, this time feels a bit different. After experiencing several rounds of bull and bear markets, the resilience of the crypto market has indeed strengthened a lot. The deep involvement of institutional funds has provided some cushion. But we still need to be vigilant.
Speaking of this, the Layer2 sector has generally been a bit weak recently. Take Linea for example—its EMA7 moving average has already broken below a key support level, and the RSI is also hovering in the weak zone, with its trend largely in sync with other Layer2 tokens.
But looking at it from another perspective, this may not necessarily be a bad thing.
Linea is backed by ConsenSys, and the TVL data has remained relatively stable. The ecological construction has not stopped, and the technological advantages are still evident. During market adjustments, it is precisely a good opportunity to test the true quality of projects—those that can withstand the storm often have greater potential for explosive growth in the future.
If we really have to face the tough battle of tightening liquidity, here are a few suggestions:
Control your position well and don't use up all your bullets at once. Keep a close eye on projects with solid fundamentals; coins that rely solely on hype will scatter with a gust of wind. Also, playing with high leverage is really not the right time now.
Only when the tide goes out do we discover who has been swimming naked. Quality assets always become stronger after the storm; this is not just a saying.