These past few days, cryptocurrencies and the stock market have both experienced a big dump, causing many people to feel anxious. The core reasons behind this are actually twofold. Let me explain clearly, and you'll feel more at ease.

1. Market funds have been heavily drained
The U.S. Department of the Treasury has recently faced tight funds, reducing spending while also issuing a large amount of $163 billion in government bonds. This is like draining liquidity from the marketplace and the stock market; with less money, assets with high volatility like Bitcoin and stocks naturally can't withstand selling pressure, and their prices can't hold up.

2. The Federal Reserve has signaled a hawkish stance
Federal Reserve officials, such as Goolsbee, publicly stated that people should not expect a rate cut yet. Previously, the market was hoping for a rate cut by the end of the year to give a boost, but with that expectation dashed, panic sentiment surged, and sell-offs concentrated.

My view is: don't be afraid, this isn't a true bear market yet! The reason I say this is because there is a clear battle between bulls and bears. This decline is mainly due to short-term liquidity tightness and emotional factors, rather than fundamental economic issues. As long as the U.S. government resumes injecting funds or the Federal Reserve signals some easing, liquidity will recover, and the market will rebound quickly. The more it falls now, the closer it might be to the bottom.

Here are three tips for ordinary people to respond:

1. Don't blindly follow the dump — impulsive actions during big dumps are the easiest way to make mistakes. Staying calm is more important than anything else;
2. Focus on core assets — like Bitcoin and some high-quality stocks that have been unfairly killed. When the market warms up again, these tend to rebound fastest. Now is a good time to pay attention;
3. Keep some bullets ready — opportunities often come from drops. Having cash on hand allows you to seize signals promptly. If you're fully invested and caught, you'll only be left worrying.

Want to avoid being dragged by the market and seize opportunities amid volatility? I can help you clarify your thinking and find the right rhythm. Investing isn't about who makes money faster, but who survives longer. If you have any questions, feel free to reach out to me anytime.