Many people focus on whether the price of cryptocurrencies rises or falls after the Federal Reserve raises interest rates, but that's only superficial. What truly determines whether you can profit long-term in the crypto space is understanding the deeper changes behind this policy cycle.

Honestly, those who only watch K-line charts in the short term often don't make big money. The real profit-makers are those who grasp the structural shifts in the market.

During the massive liquidity injection from 2020 to 2021, market funds were extremely loose. What was the result? A bunch of projects with no real application value were driven to sky-high prices, and market bubbles piled up. Now, with the interest rate hike cycle underway, these bubbles are like balloons being popped. Projects lacking actual technology support and relying on storytelling are collapsing one after another, while only those with real use cases and technological accumulation can survive. From another perspective, this is like performing a "surgery" on the market—removing the trash and keeping the essence.

Even more interesting is the shift in institutional attitude. During the previous bull market, many institutions entered solely for quick arbitrage. They made a profit and then withdrew, not caring about the projects themselves. But after this round of rate hikes, institutions are starting to view crypto assets differently—they're no longer just speculative instruments but are seen as alternative options in asset allocation. Recent market trends already reflect this change.

This shift is crucial. It indicates that the crypto market is evolving from a retail-driven, highly speculative environment into a more mature and rational asset class. For long-term participants, this is actually a positive sign.