This week's market has been a roller coaster! Macro news has been bombarding us one after another, turning the market upside down, and our wallets are also fluctuating wildly. As an observer who has been in the crypto world for many years, today I will break down the current situation in the most straightforward way, looking at how to protect your principal while finding opportunities amid the volatility.

The Federal Reserve's tug-of-war intensifies, monetary policy may reverse

The Federal Reserve has been causing a stir lately. Internal disagreements are severe, and even maintaining a cordial appearance is becoming difficult. The latest interest rate decision surprisingly had three dissenting votes, which is quite rare. Some are eager to cut rates, while others insist on holding steady, clearly indicating fundamental disagreements over the policy direction.

Even more interesting is that Powell's term is already counting down, and there are reports that the White House is considering promoting Haskett. This gentleman has traditionally advocated for loose policies. If he takes over the Fed, its independence might be significantly compromised. Historically, political interference in monetary policy has never been beneficial; risks in the bond market and asset volatility are following closely behind. Conversely, if the dollar loses stability because of this, decentralized assets like Bitcoin could become safe havens—immune to the influence of a single political system, which is precisely what gives them their value.

Geopolitical risks ease, safe-haven assets face adjustment pressure

There are new developments in the geopolitical landscape. Negotiations between Russia and Ukraine have sent positive signals, and tensions seem to be cooling down. In the short term, the purchasing power of safe-haven assets like gold and Bitcoin may weaken significantly. Recently, these assets have surged remarkably, largely because funds are seeking risk hedges. Once geopolitical tensions ease, a price correction is highly probable.

That said, we still need to look at the long term. Peace is ultimately a good thing, allowing the global economy to enter a stable growth cycle. This is actually a positive for the healthy development of the crypto ecosystem—rising risk appetite encourages institutional and individual investors to focus on long-term assets. The current adjustment is less of a bad sign and more of a good opportunity to get on board.