2.6 The market is completely crazy! Yesterday, we were talking about diversification and hedging, and today it’s a free fall with no differentiation—all assets crashing together, there’s no safe haven, and everyone trying to buy the dip is just getting buried!

Let's start with the most battered virtual currency, BTC broke through $60,000 and is now at $63,860.8, down 12.81% in 24 hours, with a low of $60,000. From the high of 92,187, it has fallen 30.7%. The entire network experienced $2.069 billion in liquidations in 24 hours, with 432,000 traders wiped out. Long positions account for 92%, and the fear index hit 12—extreme fear. Retail investors buying the dip are just taking the fall!

Looking at gold, it was above 5000 yesterday, but today its safe-haven attribute has completely failed. Spot gold is at $4,746.6 per ounce, down 3.76% in 24 hours. All previous gains have been wiped out, and funds are fleeing wildly! The US stock market isn’t doing much better either!

The current market logic has completely changed:
Virtual currencies: The US Treasury Secretary explicitly stated no rescue and no intervention. Institutions are rushing to exit, BTC ETF net outflows have continued for 15 days straight, with over $2.5 billion withdrawn in a single week. BlackRock’s iBit sold another $930 million. Technical breakdown is complete, and the $63,000 level is at risk—look for $60,000-$58,000. Buying the dip now is just suicide!
Gold: The dollar is strengthening, US bond yields are rising, and safe-haven demand is hedged by liquidity tightening. Plus, previous gains are too large, and funds are taking profits. Short-term technical weakness is emerging. The $4,700 level is the last line of defense—don’t blindly add positions!
US stocks: US initial jobless claims exceeded expectations, signaling a cooling labor market. The Fed’s rate cut expectations are delayed again. Overvalued bubbles are bursting, and funds are pulling out of risk assets across the board. Defensive sectors can’t hold up either—massive sell-off across the board!

In this environment, don’t talk about profits—saving your life is the top priority! Adjust your asset allocation immediately:
Cash/money market funds should be increased to 50%. Having cash makes you less anxious. Wait until market panic subsides before acting. Buying the dip now is equivalent to self-destruct!
Gold/precious metals should be reduced to 20%, leaving only core positions. Don’t touch $4,700 before it stabilizes. Short-term safe-haven demand has failed—don’t be fooled!
Defensive sectors in US stocks should be cut to 25%, leaving only undervalued, high-dividend utilities and healthcare giants. All tech and cyclical stocks should be cleared—don’t hold onto illusions!
Virtual currencies should be completely liquidated! Observe, and absolutely avoid leverage. If $60,000 breaks, it’s a bottomless pit—buying the dip now is just giving away money!

This is systemic risk—all assets are falling. Don’t look for so-called “safe assets.” Cash is the best safe haven! There are no signs of a bottom in virtual currencies; $60,000 is unlikely to hold. Gold will likely fall further in the short term—$4,700 is the key line of defense. US stocks haven’t fallen enough yet—don’t rush to buy the dip!