The latest statement from the Bank of Japan is worth noting - they are prepared to continue raising interest rates.

What does this mean? Japan has officially bid farewell to the era of negative interest rates, and the gates of global liquidity have tightened another notch. Arbitrage funds will accelerate their flight from high-risk assets, with the cryptocurrency market being the first to bear the brunt. Volatility? It will only get more intense.

In fact, as early as the beginning of November last year, I mentioned that the fourth quarter would see a policy shift from global Central Banks. Now, it appears that the Federal Reserve, the European Central Bank, and the Bank of Japan are forming a synchronized tightening situation. This is not a solo performance by any one Central Bank; it is the overall liquidity that is cooling down.

What should we do then? Here are a few ideas:

Leverage must be reduced, and it is safer to control it within 3 times. High leverage in this environment is a ticking time bomb.

Hold more stablecoins to ensure you can act at any time. When the market experiences extreme fluctuations, having chips in hand gives you the initiative.

Focus on mainstream cryptocurrencies like Bitcoin and Ethereum, as their liquidity and consensus are still present. It's best to avoid those overvalued altcoins at this time.

In a period of tightening liquidity, defense is always more important than offense. Surviving is the only way to qualify for the next opportunity.