The stock market is on holiday, but the big show in the crypto market is just beginning. Recently, the market is highly focused on one thing: Trump may announce the new Fed chairperson during the Christmas holiday.

How important is this position? It controls the switch of global liquidity. A decision by the Fed chairman can affect the flow of funds in the entire encryption ecosystem. Whether Bitcoin will take off mainly depends on how this guy operates.

**Two Bets in the Market**

Currently, there are two Kevins competing for this position. According to market expectations:

Kevin Hassett (support rate about 54%) - policy is dovish. If he comes to power, it means loose policies, abundant market liquidity, and encryption assets will easily gain funding support. Kevin Warsh (support rate about 21%) - style is hawkish, advocating for tightening. If he takes power, funds will be tighter, and the market will enter an adjustment period.

Before the official announcement, the market was in a wait-and-see phase. With unclear results, investors were hesitant to place bets, and the market could only oscillate within a certain range. When the news is truly released, it marks the starting point of severe fluctuations - it could be a sharp rise or a sharp drop.

**Liquidity Trap Before Christmas**

As the holidays approach, the market trading volume usually shrinks, and liquidity becomes thin. In this environment, even a small amount of capital can cause significant price fluctuations. Retail investors are particularly susceptible to being trapped during this period. It is recommended to adopt a wait-and-see strategy in the next few days and reduce trading frequency.

**Find stability in uncertainty**

When policies are inconsistent and the flow of funds is unclear, your assets need to have risk resistance capability. In the crypto market, choosing a stablecoin that is backed by real assets and is not directly affected by the policies of a single central bank is a good idea. Stablecoins that are over-collateralized by mainstream assets (such as Bitcoin, mainstream public chain tokens, etc.) have verifiable value backing for each unit. Some platforms also offer liquidity mining mechanisms, allowing you to earn additional income while holding stablecoins. This way, even in market fluctuations, you can still earn returns on a relatively safe basis.

The key is to find an asset allocation scheme that is both stable and can generate returns.