The underlying logic behind the Federal Reserve's policy changes is worth deep reflection. Trump's attitude towards the current Fed Chair actually reflects a deeper issue: the resilience of the US economy may be weakening.

What does rapid rate cuts usually imply? On the surface, it appears to be liquidity release, but essentially it may be masking weakness in key economic indicators such as employment and consumption. In this context, the crypto market might temporarily benefit from a liquidity wave—easy money, strong risk assets, and rising coin prices—appearing very prosperous.

But this is the most dangerous time. When the market finally realizes that these rate cuts are hiding signals of an economic recession, sentiment can shift instantly from greed to panic. By then, all risk assets could face a simultaneous rush to exit, liquidity in the crypto market might sharply dry up, triggering a significant decline.

Another overlooked factor is the continuous rise in Japanese government bond yields. This is constantly draining liquidity from global risk assets, and the crypto market is certainly among them. This explains why recent market performance has been so weak.

What should be the strategy in such a situation? While confirming short-term trading opportunities, it is crucial to control risk exposure. Enter and exit quickly, seize potential rebound opportunities, but do not be fooled by short-term gains—be alert that unexpected liquidity crises could erupt at any time.