#BinanceABCs The US Treasury Secretary releases a 3.5% GDP growth forecast. Is the crypto world really about to panic?



We need to have a serious discussion about this issue. These days, everyone is interpreting that economic data, but the positive and negative signals you see might actually be misunderstood.

On the surface, a strong economy means risk-averse funds dissipate and risk assets come under pressure. But the deeper logic is the real killer—when authoritative institutions start to be bullish, the signal they send is "traditional financial assets have become attractive." Safe-haven assets like US Treasuries and US stocks are siphoning liquidity that originally flowed into the crypto space.

What’s more painful is the change in ordinary investors’ mindset. When economic prospects look bright, the working class no longer chases high-risk assets recklessly—this shift in market sentiment often has more impact than any policy suppression. Once this expectation becomes a consensus, the speculative heat on altcoins will significantly cool down, and BTC may enter a long sideways or slow decline phase. The so-called "altseason" might turn into a prolonged correction period.

The choices facing traders are quite realistic:

First, clear out positions. Those coins without real utility and solely supported by stories should be cut—only keep core assets.

Second, wipe out leverage. The biggest risk during the anticipation phase is adverse volatility; a forced liquidation can wipe out an account.

Third, hold UST and wait. Instead of blindly adding to positions, hold stablecoins and wait for the market to digest this "positive" with a sharp drop. When everyone is despairing, opportunities will naturally appear.

Crypto market risks are often disguised as prosperity. Behind this shift in expectations, what’s being pierced isn’t the market bubble, but the countless people’s overconfidence. Remember: when others are optimistic, you must also see the risks.
BTC-1.81%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
FlashLoanPhantomvip
· 12-16 13:29
Holding U to eat, cutting positions to sleep, leverage is the devil, bro.
View OriginalReply0
LiquidatedDreamsvip
· 12-16 13:17
Here comes the liquidity siphoning again, I can only haha --- The zeroing out of leverage was a real punch to the gut; someone did that last year too --- Holding U and waiting is fine, anyway now whatever you buy is just taking over the bag --- Are US bonds and US stocks really that attractive? Or is it just an upgraded version of the old leek-cutting scheme --- The clone season is entering an adjustment period, what they said is not wrong, I've seen too much of it with my own eyes --- It's most dangerous when others are bullish, now I finally understand
View OriginalReply0
ChainSauceMastervip
· 12-16 13:14
Uh... I feel like that's a bit over the top. Isn't a strong economy a good thing? How does it become a killer move? I agree with clearing out scam coins, but holding U and waiting is too absolute. Who will pay for missing the rebound? The logic of US bonds and US stocks siphoning liquidity... actually, we said the same thing last year. The key still depends on what coin you hold. BTC still has its own independent logic, right? But to be honest, the most feared thing is being liquidated due to leverage. This really needs to be listened to.
View OriginalReply0
MultiSigFailMastervip
· 12-16 13:10
The term "siphon liquidity" is brilliant. US bonds and US stocks are really undermining the crypto space.
View OriginalReply0
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)