Aside from rate hikes, the short-term factor accelerating the market downturn is the escalation between the U.S. and Iran. Seven oil tankers were attacked in the Strait of Hormuz, and oil prices have become a pressure point again. If oil prices don’t drop and keep rising, it’ll blow up U.S. inflation. Rate hikes will just continue gradually, and they might not even be of much use. Everyone’s expectations are turning pessimistic, because based on the trajectory of the U.S.-Iran conflict escalating, what comes next is skyrocketing CPI, soaring interest rates, and a global stock market crash. Of course, the crypto market won’t be spared either. $CRCL, Tencent, and Moutai might all follow the drop. It’s just something we can’t avoid. But when the baby gets thrown out with the bathwater, remember to pick the baby back up. As for the bathwater, it’s going to get thrown out sooner or later anyway.