As everyone knows, inflation is very high now. June inflation was 9.1 percent, up from 8.6 percent in May and at a four-decade high.

The main reason for high inflation is that the USA adopted the "American Rescue Plan" during the COVID-19 pandemic. It included an increase in the federal minimum wage, direct checks for Americans making $75,000 or less a year, an extension of $400 federal unemployment benefits, and more money for small businesses. The total pandemic-relief tab to several trillion dollars.

The American Rescue Plan Act of 2021 has contributed to inflation. So the Federal Reserve announced several interest rate increases in 2022 as it races to tamp down rapid inflation.

The impact of the interest rate hike on the global financial market is unavoidable. The global financial market has declined in the past six months, including the stock and crypto markets.

But recently, we have seen the dollar index rise, and the euro has tumbled to parity against the US dollar. It’s the first time the euro has sunk to that level since 2002, in the early years of the currency’s existence.

Many people think that the Fed's money printing is an act of drinking poison to quench thirst. The temporary prosperity was followed by record-high inflation. But I think the Fed is waging a currency war. At present, not only the USA, most European countries and developing countries are facing unprecedented high inflation rates. The USA is shifting its government debt through a rise in the dollar index, making global residents pay for the American Rescue Plan.

As a practitioner in the crypto industry, we should always pay attention to the Fed’s policy. The crypto market is closely linked to the global financial market. While the market conditions have not been optimistic these months, once Fed slows the pace of interest-rate increases, I think everything will get better. Considering that Fed’s aggressive rate hikes raise the likelihood of a recession, the Fed is likely to signal a more dovish stance.

In the traditional financial market, futures are a very common derivative. In 1848, the first modern futures exchange was born in Chicago, USA, which determined the standard futures contract model, and gradually improved the margin system. Futures are now nearly 200 years history, long enough to prove they have some value.

For many people, the first impression of futures is high leverage. Yes, futures have the characteristic of high leverage, and many people intend to invest futures with all of their assets. But with the high volatility of the crypto market, many people have experienced liquidation, so they think it is like gambling.

But in fact, the futures is innocent, and the correct way should be to use it rationally. Futures boast many unique advantages when compared with spot trading. For instance, futures investors don't have to rely on price surges to earn profits. Instead, they can choose to go long or short and get profit from market swings, so that they can make earnings despite bearish market factors. In a bear market, although the spot market will be depressed, the futures market is still active, so everyone says that there is no bear market in futures. With futures, investors can seek profits through more types of investment strategy.

In addition, by using futures, investors can use limited funds to hedge risks. For example, miners are worried that the price of the crypto will drop in the future, which will lead to a decrease in the value of the Bitcoin mined in the future. Then he can choose to short BTC to obtain the income and make up for the loss due to price drop.

As of futures, we should invest with the correct mindset, adjust the leverage according to our actual capital level, and don't all in because of market sentiment. Only in this way we can prevent risks and prevent futures become gambling products.

In such a unstable market, I think the first thing is to invest in yourself, deep dive the market trending and build capability of fundamental analysis, and do not follow the crowd blindly when do your investment. If you learn more in a bear market, you will gain in a bull market.

Second, you can join some project at a low cost, such as some free projects, maybe someday you can get some airdrop from it. Even not, the experience can improve our understanding of the industry, and it’s more impressive than reading.

At last, if you believe in this industry, I think you can buy in the blue-chip on dips, such as BTC&ETH. The value of crypto is based on consensus. Once economy recovers, high chance these price will rise, you can decide when to buy according to the market situation, or you can also buy in batches like DCA，dollar cost averaging, to reduce your average cost.

These are some of my opinions as reference only, NFA.

In such a unstable market, I think the first thing is to invest in yourself, deep dive the market trending and build capability of fundamental analysis, and do not follow the crowd blindly when do your investment. If you learn more in a bear market, you will gain in a bull market.

Second, you can join some project at a low cost, such as some free projects, maybe someday you can get some airdrop from it. Even not, the experience can improve our understanding of the industry, and it’s more impressive than reading.

At last, if you believe in this industry, I think you can buy in the blue-chip on dips, such as BTC&ETH. The value of crypto is based on consensus. Once economy recovers, high chance these price will rise, you can decide when to buy according to the market situation, or you can also buy in batches like DCA，dollar cost averaging, to reduce your average cost.

These are some of my opinions as reference only, NFA, thanks for listening.