Dear friends, if you woke up this morning to find your account shrinking, or even your positions directly evaporating, don't be sad; you are not alone. The entire network has seen liquidations close to 2.2 to 2.5 billion dollars in the last 24 hours, with over 335,000 investors being directly taken out of the market.

The trigger for this black Sunday was Trump's formal nomination of Fed chair nominee Waller on January 30.

Is he a friend of digital currency or a retail investor harvester?

After Waller's nomination, the first reaction in the crypto world was actually one of celebration, because he had publicly supported Bitcoin, considering it an excellent gauge for monetary policy. But the capital markets quickly woke up: this 55-year-old man is fundamentally a hawk on monetary policy.

From the perspective of retail investors, what are we most afraid of? We fear that the Fed won't loosen its policy and that quantitative tightening (QT) will occur. Waller's historical record shows that even during times of economic pressure, he cares more about inflation and discipline.

In my personal opinion, don't be fooled by his Bitcoin-friendly label. Waller does have a positive outlook on Bitcoin, but he values discipline even more. He even proposed significantly reducing the Fed's current balance sheet of up to 6.6 trillion dollars. What does shrinking the balance sheet mean? It means draining the liquidity from the market. This fear of shrinking the balance sheet is precisely what triggered the sell-off on Sunday.

Large holders are waiting for buying opportunities at 70,000 dollars or even lower, while leveraged retail investors are being liquidated in the dark. If you wish to stay at the table, be sure to put away your leverage and focus on the truly valuable underlying infrastructure—like Ethereum's upcoming upgrade #Glamsterdam , or Bitcoin's #ZK-rollup experiment.

Although Waller is a hawk, he is also a sensible person. As long as the Fed doesn't act recklessly, the long-term scarcity value of Bitcoin remains unmatched. But the premise is that you have to survive until then.

Stay vigilant, and see you next time!