2025-12-29 01:20:45

At the Year-End Threshold, the Cryptocurrency Market Enters a "Calm Waters and Deep Currents" Mode

This week, the market appears calm on the surface, but underlying currents are surging. European and American institutions are entering holiday mode, trading volumes have plummeted, and many European exchanges have closed early. Coupled with the year-end accounting and employee vacations of various financial institutions, truly active liquidity won't return until after January 5th.

What is the most critical during this period? Even a small amount of capital can cause significant waves. High leverage is especially risky now, and position management must be extra cautious.

But the risks are not limited to liquidity alone. There are two major events to watch out for:

**Bank of Japan Meeting Minutes (to be released at 07:50 on December 29)**
Japan has just completed its December rate hike. These minutes will reveal the central bank's internal discussions and decision-making logic. Although the market generally believes that the Bank of Japan is raising rates slowly and progressing gradually, any signals of more aggressive stance in the minutes could trigger a wave of risk sentiment, especially impacting Japanese assets and the Asia-Pacific markets.

**Federal Reserve December Meeting Minutes (to be released at 03:00 on December 31)**
The core value of these minutes lies in revealing the true disagreements and consensus within the Fed. Particularly, how they discuss the interest rate trajectory for next year. Currently, the market expects rates to remain steady in Q1 and possibly loosen in the second half. If the minutes reinforce this expectation, the dollar and U.S. Treasury yields will fluctuate accordingly, and global asset pricing will be affected.

Ultimately, the year-end market isn't about trend direction but about emotional volatility in a liquidity vacuum. Large funds are on holiday, and the market overreacts to any minor disturbance. A clear direction will only become apparent after the New Year and when funds return to the market.

BTC-1,78%

ETH-0,99%

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PanicSeller

· 8h ago

Damn, another liquidity vacuum. Playing with leverage at this time is basically just giving away money.

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ThreeHornBlasts

· 17h ago

At the end of the year, this wave really depends on liquidity; even a small bullish candle can cause a cold sweat... High leverage must be withdrawn quickly, as the cost of dumping at this time is extremely low.

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LongTermDreamer

· 12-29 01:46

Still waters run deep? I think, this is just the rhythm of a three-year cycle. Every year at the end of the year, it’s the same—scare retail investors and then start rebounding. History always repeats itself. Leverage is indeed dangerous, but which time haven't the real retail investors been cut like this, haha.

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DegenDreamer

· 12-29 01:37

This period has been a huge pit, liquidity has been drained completely, and leverage is exploding at any moment. I better reduce my position first...

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BearMarketBard

· 12-29 01:36

Oops, it's another day of "small money causing big waves." High-leverage buddies should take it easy. Tomorrow's Bank of Japan, the day after tomorrow's Federal Reserve—two bombs going off back and forth. In a liquidity vacuum, everyone is cannon fodder. Let's wait until after the New Year. For now, lying flat is the most comfortable.

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GasFeeSobber

· 12-29 01:34

Oh no, this period is truly a casino mode. Anyone who dares to use high leverage will die. Playing with fire in a liquidity vacuum, and you'll be crying before you know it. Wait for January to recover, and for now, just honestly lie flat.

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FantasyGuardian

· 12-29 01:34

The end-of-year rhythm is really incredible, the liquidity vacuum is just waiting to cut the leeks, small funds set off a storm with just a little push. --- We have to wait until January 5th for real money to enter the market, these days are basically a casino. --- Two consecutive minutes, really treating me, a small retail investor, like a ball to kick around. Maybe I should reduce my positions first. --- All the big institutions are on holiday, only our group is here staring at the charts. So lively. --- Can a tiny bit of capital cause a big wave? Then I must stay away from high leverage; everyone who’s been through the pits knows. --- Let’s wait and see what the minutes say. I feel like the Fed’s intention is the real bomb. --- “Deep waters run silent” sounds nice, but I think it’s just silence before the leek-cutting. --- If next year’s interest rates really stay until the second half before easing, how long will this wave last?

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LayoffMiner

· 12-29 01:22

It's the end of another year, and this wave of liquidity vacuum really wears me out... Small funds are easily trapped, big funds have gone on vacation, who the hell will come to rescue the market?

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