In mid-January, the uncertainty in the crypto market suddenly increased. A well-known trading analyst recently pointed out in a market review that, despite the surface appearing calm, there are several signals worth paying attention to.

First is the coincidence of timing. The market reached a local high 2-3 days ago, which coincides closely with the fermentation period of some external risk factors. Intuitively, uncertainties related to war or geopolitics may become the main triggers for recent declines.

Second, the capital flow also signals something. There has been an abnormal outflow of funds from exchange ETF products, which not only reflects a shift in market sentiment but more importantly—institutions and funds are not showing signs of large-scale buying at the moment. When smart money chooses to wait and see, the market usually needs to adopt a more cautious attitude.

**What is the action plan?**

The trader's advice is quite straightforward: close all futures positions as the first choice. For existing spot holdings, appropriate risk hedging should also be considered. Simply put, take small profits first and clear all positions.

However, he also added an important reminder—there's no need to panic excessively. After the holidays, the market usually takes about a week to realign its rhythm and expectations. This means that from now until next week, the probability of misjudgment is much higher than usual.

The market dislikes uncertainty, which is a consensus among traders. When external risks increase, institutions are reluctant to actively deploy, and funds are flowing out, maintaining a cautious attitude is far wiser than blindly bullish. Of course, this doesn't mean the market will keep falling forever, but it does mean—before true certainty arrives, managing your positions carefully is the more prudent choice.