The change in global liquidity is obvious, and BTC may enter a consolidation phase. There is evidence that liquidity trends usually affect BTC price movements about 13 weeks in advance. The hawkish tone of the FOMC meeting may suppress BTC's upward trend. Since the December 2024 FOMC meeting, the inflow of funds into BTC ETFs has stabilized, maintaining at a record peak of US$35.9 billion. However, as the Fed becomes increasingly hawkish, venture capital may hesitate to invest further in these ETFs until monetary policy becomes clearer. Although the market initially shrugged off the hawkish tone of the December FOMC meeting, analysis of BTC's historical performance suggests that such hawkish remarks may limit BTC's rise until the Fed signals a shift to a more dovish stance. While many attribute the rise in BTC prices in 2024 to the launch of ETFs, it may be more closely related to the Fed's policy changes. The rise in 2024 began with the more dovish attitude of Fed Chairman Powell at the end of January 2024. This coincides with BTC's upward momentum, but at the March FOMC meeting, Powell became less clear about when the Fed would start cutting rates, and this uncertainty may have led to the subsequent six months of sideways trading, making the next move heavily dependent on the Fed's turn to dovishness in September. Although Trump's policy stance has helped cryptocurrencies rise, it is not ruled out that the Fed's hawkish stance may limit the upside. The current market downside risks look limited, but risk management in advance can avoid risks. Implied volatility is low, and the rational use of options can both maintain market exposure and manage risks. Currently, options provide an attractive opportunity due to low levels of implied volatility. Call options are relatively cheap, allowing traders to take advantage of potential upside profits. Alternatively, traders can use put options to protect rich BTC profits at a low cost. Given the current uncertain outlook, using options is a prudent way for traders to manage risks while maintaining exposure to market volatility. Some of the above views are from Matrix on Target, contact us to obtain the full report of Matrix on Target. Disclaimer: The market is risky and investment should be cautious.This article does not constitute investment advice. Digital asset trading can be extremely risky and volatile. Investment decisions should be made after careful consideration of personal circumstances and consultation with a financial professional. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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