Is the Fed going to make some moves again? Recently, there have been tight rumors that the candidate for Fed chair favored by Trump may start tightening the quantitative easing policy. If this turns out to be true, the crypto market is likely to shake a bit.

In simple terms, QE is when the Fed activates the printing press to buy government bonds, flooding the market with large amounts of cash. Where did all that money go? Besides flowing into the stock and real estate markets, a significant portion of hot money rushed into the crypto market. Think about the massive liquidity injection in 2020; BTC skyrocketed from a few thousand dollars to its peak of $69,000, and ETH followed suit—during times of excess liquidity, crypto assets are one of the most attractive pools for investment.

If the Fed were to reverse course and tighten liquidity now, the situation could be very different. With less money in the market, high-risk assets like those in the crypto market would be the first to feel the impact. Price volatility in the short term is almost inevitable, as the significant price increases over the past few years have largely relied on this influx of "water".

In the face of such uncertainty, how can you protect your principal and even find opportunities? There are a few principles to adhere to:

**Don't go all in.** Entering the market with a full position at this point is basically gambling with your money. A reasonable approach is to build your position in batches, adding more when the market drops, which will naturally lower your cost. Rushing to go all in will only turn you into chives.

**Keep an eye on policy indicators.** Before Powell's term ends in May next year, every statement from the Fed may stir waves. Pay more attention to news from authoritative channels, and be less trusting of gossip and "insider" information in WeChat groups; don't let emotions dictate your thoughts.

**Mainstream coins are the way to go.** BTC and ETH, as mainstream coins, have much stronger ecosystems and consensus, and their risk resistance is not comparable to those small coins. As for those "meme projects" with little practical application, if liquidity tightens, they could go to zero immediately, so it's best not to touch them.

However, speaking of which, crises often hide opportunities. Inflation in the U.S. is still lingering at a high level, and with significant economic pressure, the central bank might have to restart easing. In the long run, the core logic of cryptocurrency—decentralization and anti-inflation properties—has not changed. If this round of correction really comes, it might actually be an opportunity to enter quality assets.

In short, don't panic and don't be blindly optimistic. See the situation clearly, keep some bullets in hand, and you can survive longer in this game.