Recently, the performance of the US stock market has attracted a lot of attention. The S&P 500 is about to break through the 7000-point mark, and behind this impressive number, there are actually warning signals that should be heeded.

On the surface, eight consecutive months of gains is a commendable achievement. But a closer look reveals that large funds are quietly withdrawing from the technology sector. Why is this happening? Major institutions have already sensed signs of a change in the market trend and are beginning to hedge risks in advance. Such actions usually indicate that something significant is coming.

You might think that the changes in the US stock market are still far from the crypto world. Not quite. History repeatedly shows us that global capital flows are interconnected. When traditional financial markets experience intense volatility, hot money can shift rapidly beyond expectations. The crypto market often becomes a destination for risk hedging or seeking higher returns. In this process, retail investors are easily caught in repeated cycles of being exploited.

There is also a deeper variable. If the Chair of the Federal Reserve changes, the policy direction could be adjusted accordingly. A change in the Fed’s leadership can throw dollar policy into disarray, causing global capital to panic. Where will this panic-driven capital flow? Some will definitely flood into assets like Bitcoin. But this process is not smooth. Large capital inflows and outflows often cause sharp price fluctuations, and retail investors can easily get hurt in the process.

Sector rotation has already begun in traditional markets. Funds are flowing into sectors with relatively reasonable valuations. Translated into the crypto space, this means that besides Bitcoin, some altcoins and emerging sectors may also present opportunities. If you only know how to hoard Bitcoin, you might miss out on these rotation opportunities or even get caught at relatively high points.

The current situation requires us to be more cautious. Don’t be blinded by market prosperity. True investors need to sense danger when others are most greedy. It’s time to adjust strategies: maintain the stability of core assets, deploy small amounts of capital in potential sectors early, and most importantly, keep enough flexibility. The market is not lacking opportunities; what’s missing is patience and wisdom to wait for those opportunities to arrive.

A bull market can easily cause people to lose their rationality, while a bear market can make them more clear-headed. But the real winners are often those who are prepared before the storm arrives.