Recently, I saw the three major US stock indices rising collectively, and the encryption sector has also started to stir. BNC skyrocketed by 20.6% in a single day, which is indeed quite eye-catching. However, the more it is like this, the more one needs to stay clear-headed.

The catalysts from the news can indeed ignite market sentiment in the short term, and the influx of funds will push prices to continue rising. But the problem is that this wave of increase is more led by emotions. It is hard to rule out the possibility that major players are taking the opportunity to sell off, as seen with the likes of BNC, which surged 20% in a short time—after they cash out at high positions, retail investors end up holding the bag. Looking at Coinbase and Circle, which are relatively stable, but ALT5 Sigma has instead fallen, indicating a serious internal differentiation in the market, and it's not a situation where everyone benefits equally.

I personally judge that there may still be an inertia push higher in the short term, but its sustainability is questionable. The encryption market is known for its high volatility, and once the news hype passes, a correction is almost inevitable. Looking at a longer time frame, real support still relies on improvements in the regulatory environment and the fundamentals of the industry, and now the regulatory attitudes of various countries are tightening, so don't hold too much hope for a sustained increase.

How to avoid becoming a bag holder? Three principles: First, control your FOMO mentality; observe the skyrocketing assets first, and decide whether to enter after a technical pullback. Second, do proper asset allocation; do not concentrate your funds on a single cryptocurrency. Third, strictly enforce stop-loss discipline; do not hesitate when it's time to cut losses.

Ultimately, market opportunities and traps always coexist. Protecting capital is more important than chasing high profits.