This round of correction is truly a touchstone. Quite a few people couldn’t withstand the pressure and sold at a loss to exit, which is honestly a pity—because the turning point might be right in front of us.

Why do I say that? On December 1, a signal that many people ignored appeared: more than three years of quantitative tightening (QT) officially came to an end.

Some might ask, what exactly is QT? Simply put, it’s the Fed reclaiming and destroying previously printed US dollars, artificially creating scarcity to support the value of the dollar. Over these three years, the Fed’s balance sheet was slashed from a peak of $9 trillion to around $7 trillion. That’s $2 trillion just evaporated into thin air.

That move is ruthless. With fewer dollars in circulation, the currency naturally strengthens, and inflationary pressure is kept in check. But at what cost? Economic activity gets choked, unemployment rises, and the entire market moves in slow motion. For the crypto market, the impact is even more direct—without liquidity, how can you expect prices to rise?

But now, the rules of the game are about to change. The end of QT itself is a signal that policy is starting to shift. Just look at the current US economic data: recession risks are looming, and unemployment is high. Want to get the economy running again? There’s only one way—open the floodgates. From the dissolution of the DOGE department to Trump’s preemptive moves to secure the next Fed chairmanship, none of these are coincidences.

Right now is the toughest moment before dawn. But the Fed has no way out; if they keep tightening and actually slip into a recession (just look at the lessons from some other economies), then any stimulus measures will be too little, too late.

So my judgment is, as soon as this month or as late as next quarter, the direction will gradually become clear. Liquidity will inevitably return; the market can’t stay dry forever. As for the cost? It’s just the risk of dollar depreciation. But against the backdrop of the AI industrial revolution, it might even spark another economic miracle.

Those who are handing over their chips right now—honestly, a few months from now, they might regret it. Just like I said back when bitcoin was at $50k–60k—some prices you may never see again in your lifetime.