#Gate广场圣诞送温暖 Crypto Assets are the risk assets among risk assets.

The higher the return of an asset, the greater the volatility and the more sensitive it is to liquidity. Once the economy deteriorates, the market's first reaction is to seek safety in assets; cash and short-term bonds are the first to be grabbed, while categories like Crypto Assets, which have a risk ceiling, will be the first to be hit.
So if we really encounter a prolonged economic crisis, even if Bitcoin halves again, we cannot just rely on the "crypto cycle" to fantasize about a big bull run. If the macro environment is not supportive, emotions and narratives will not hold up.
Ranked from low to high risk: cash → bonds → money market funds → gold and commodities → real estate → mutual funds → stocks → private equity → Crypto Assets.
The further back you go, the higher the risk and the more exaggerated the returns, and the drops are also harsher. The reason why Crypto Assets are sold off first is that they sit at the very top of this risk curve.