Recently, the political moves of a prominent political figure have sparked another round of heated discussion in the crypto circle. To briefly outline the core logic: when the political climate becomes clearer, market uncertainty decreases. The previous situation of wavering between sides and unclear policy guidance was the biggest headache for large funds. Now, as the situation gradually clarifies, at least in the short term, the US attitude towards technology and the crypto sector may become more stable and open. This expectation itself is a positive signal for the market, providing everyone with a buffer opportunity.

But the reality is harsh.

Looking at the current market, Bitcoin has already fallen below $86,000, nearly a 30% drop from its all-time high, and over 180,000 long positions have been liquidated in just 24 hours. What does this number represent? It indicates that market sentiment has hit rock bottom, a typical liquidity crunch and panic state where no one dares to take the other side. In this atmosphere, a single statement from a politician is not enough to immediately turn the tide.

My judgment is this: do not expect a V-shaped reversal in the short term. The real pain point in the current market lies in the tight global liquidity and the severe decline in risk appetite. This political news is more like a painkiller for emotions, preventing the market from collapsing completely due to panic, but to truly stop the bleeding and rebound, there must be substantive policy support or genuine capital inflow. Both are indispensable.

So, what should investors do now?

First, don’t rush to buy the dip. The market is still in the "bottoming" phase; any small rebound could be crushed down again. Buying too early can easily trap you in the middle of the mountain. Patience is key.

Second, focus on subsequent policy developments. Wait to see if there are any real, specific, crypto-friendly bills or official statements. Those are the true triggers for market movements, not vague expectations.

Finally, keep a steady mindset. News is ultimately just news, not an adrenaline shot. Stabilize your positions, observe more, think more, operate less frequently, and wait for the market to give clear bottom signals. Acting rashly at this time is often the easiest way to get caught.

From a longer-term perspective, improvements in the policy environment indeed pave the way for future recovery. But now is not the time. The market needs liquidity to return and risk assets to be re-priced. This process may take time or suddenly happen after a black swan event. Stay alert and wait for genuine opportunities to emerge.