The news is here—a three-year-long quantitative tightening operation officially hit the pause button on December 1. Nearly $100 billion in liquidity that was being withdrawn from the market each month will finally stop being drained. More importantly, this could be a signal of a policy shift: the liquidity crunch is over, and there may even be an injection of funds in the future.

How will the market react? Don’t expect a straight-line surge in the short term. Volatility will intensify as both bulls and bears reprice assets. BTC and ETH will most likely fluctuate within the current range, with neither side daring to bet heavily on a direction. But looking at the long term, history is telling—BTC gained over 60% in the six months after quantitative tightening stopped in 2019. This time, with institutional funds continuously flowing in, the upside potential is even greater.

How should you allocate your portfolio? The core logic is simple: BTC must be your main holding, making up at least half of your allocation—it's your anchor against market madness. The remaining small portion can be used to bet on new sectors, such as decentralized computing power projects that combine AI and blockchain—but you need to be mentally prepared for the possibility that these investments could go to zero. Cap your altcoin exposure at a maximum of 20%—don't get greedy.

A few hard-learned lessons you must remember: Never go all in on any single asset. Do thorough research on every project—official website, on-chain real data, third-party audit reports, all are essential. Don’t rush in based on one-sided information. Set your stop-loss line—if you’re down 15%-20%, exit decisively, and don’t fantasize about making it back.

The turning point for liquidity is indeed here, but opportunities will only reward those who’ve done their homework. The market never lacks enthusiasm—it lacks calmness. Protect your principal, so that when the real opportunity comes, you’ll have a seat at the table.

(This article is for market observation only and does not constitute any investment advice. Cryptocurrency is highly volatile; please carefully assess your own risk tolerance!)