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The global financial market has plummeted; how does the crypto market operate?

The following market trend will be very complicated, and there may be huge dangers and opportunities.

On November 26, the global financial market plummeted.

The three major U.S. stock indexes fell more than 2% on average, the four major European indexes (UK FTSE, Germany DAX, France CAC40, Italy MIB) fell more than 3%, Hong Kong’s Hang Seng Index fell more than 2%, and Japan’s Nikkei Index fell more than 2%.

The direct cause of this plunge was the discovery of a new variant of the new crown virus in South Africa-B.1.1.529.

The global market may continue to be hit by the negative news of this mutant virus in the short term. Still, this negative and positive information is intertwined, and the global market may be highly volatile in the short term.

When it comes to the crypto market, it is evident that the crypto market has shown more and more risky assets like stocks rather than safe-haven assets in this crash. It has fallen sharply along with the stock market crash. Therefore, I am afraid that it will also show huge volatility like the stock market in the future.

This is a long-term benefit for us cryptocurrency enthusiasts. The virtual world based on the blockchain will accelerate, and digital assets will thrive in the future.

In the short-term (two months or even half a year), the digital currency market may face the interference of various uncertain factors, it may go bearish, or it may continue to go in the bull market for a while and then go bearish. Still, it is possible to see the virus in the medium-term and long-term. Accelerating the arrival of the virtual era in the economy may even force the Fed to continue to release water, thereby accelerating the arrival of the full-scale prosperity of digital assets.

So, in the face of the subsequent such enormous uncertainty, how should we deal with it?

Here, I suggest a fixed selling plan for everyone:

When Bitcoin and Ethereum reached our preset peaks (Bitcoin USD 70,000, Ethereum USD 5,000), we started our first part of the sell-off, which was 15%.

1. A total of 40% were sold in installments and batches before our Bitcoin and Ethereum reached the peak we expected.
2. When Bitcoin and Ethereum reach the peak we expected, I suggest you sell 15%.
3. When Bitcoin and Ethereum drop 20% from their actual historical highs, I suggest you sell 10%-20%.
4. In the end, we always hold 10%-20% in our hands and will never show up until the end of this bull market.

At present, Bitcoin and Ethereum have never reached 70,000 U.S. dollars and 5,000 U.S. dollars and have never been able to exceed 70,000 U.S. dollars and 5,000 U.S. dollars along the way. So now, in the short term, the global market is facing significant uncertainty, and the market conditions are very complex and extremely sensitive.

Therefore, the current market may have gone bearish. Still, at the same time, the trend this time is very different from the previous bull market trend, and the interference from the outside is substantial, so the current market may also have opportunities next.

Therefore, I think there are two ways for investors to carry out the following operations: one is a conservative approach, to deal with the situation that has entered a bear market now; the other is a radical approach, to deal with the possibility that there may be opportunities in the future situation.

The so-called conservative approach is to execute the above-fixed selling plan. Starting from the highest point, Bitcoin has now fallen twice by 20% or more, so it can start to sell. Ethereum can wait. Once it drops below $3,887 again, it will start to sell.

Fixed selling can choose to sell according to time intervals. For example, set the period of fixed selling to 1 month or 2 months, that is, from now to the end of December or to the end of January next year, it is divided into several batches of sales. But always keep a certain percentage (10% to 20%) across the bulls and bears.

The so-called radical approach is to always keep a part (such as 10% to 20%) across the bulls and bears, then throw away a part (such as 20%-50%), and then hold the rest for 1 to 2 months. Until the end of December or the end of January next year, see how the market will go during this period before making a decision.

These two plans and the specific settings in the plan are for your reference only, and you should make a plan that suits you according to your judgment. But no matter what the plan you make, I want to emphasize again: the following market trend will be very complicated, and there may be huge dangers and opportunities. Therefore, everyone must strive for profit as much as possible while ensuring that they hold their bottom line of risk.

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