Last night, the three major U.S. stock indices all fell, with the Dow Jones down 0.54%, the S&P 500 down 0.61%, and the Nasdaq down 0.62%. MicroStrategy (MSTR.O), closely related to cryptocurrencies, plummeted 7.5%, and Coinbase (COIN.O) also dropped 9%, which could be one of the main reasons for the Bitcoin market pullback.
However, the market performance difference between Bitcoin and altcoins is evident: Bitcoin's decline is only 5%, while the altcoin market has experienced a collapse, with multiple altcoins seeing liquidation amounts easily exceeding ten million dollars.
The reason behind this lies in the fundamental shift in Bitcoin's market positioning and funding sources. Bitcoin is no longer just a cryptocurrency asset, but a mainstream investment target favored by Wall Street, supported by significant funds from institutional investors, leading to relatively stable price fluctuations and a significant reduction in avalanche risk under extreme market conditions. In contrast, altcoins lack intrinsic value support, resembling a 'muscle man' wearing fake muscles; once the market comes under pressure, their fragile nature is quickly exposed.
The recent surge in altcoins is more a reflection of overall market sentiment rather than their intrinsic strength. Lacking sufficient funding support and clear narratives, this strength is essentially a facade. Once the 'leading brother' Bitcoin experiences a pullback, the fragility of altcoins will become fully apparent, leading to widespread selling and significant price drops. This serves as a reminder for investors that the risks associated with altcoins are much higher than those of mainstream coins, and caution is required during market adjustments to avoid unnecessary losses from high leverage.
Every pullback is a great opportunity to profit! Choose to bottom-buy these 3 assets!
DOT
Polkadot has recently gained significant attention due to its interoperability and utility within the blockchain ecosystem, attracting a large interest from developers. Its robust cross-network connectivity and emphasis on development and community involvement have allowed it to stand out among numerous crypto projects. The highly anticipated Polkadot 2.0 upgrade will focus on enhancing the network's scalability and accessibility, aiming to address some existing technical bottlenecks and further enhance its attractiveness. At the same time, Polkadot has recently launched a Layer-1 blockchain called peaq, which is dedicated to real-world applications, supporting over 50 DePIN projects across 21 industries and 3 million IoT devices. Collaborations with companies such as Mastercard, Bosch, Lufthansa, and Deutsche Telekom further showcase its vast potential.
Currently, the price of Polkadot is $8.2. Although it has slightly dropped by 1.21% in the past 24 hours, it has risen by 13.63% over the past 7 days, showing market confidence. Sentiment indicators also provide positive signals, with the fear and greed index currently at 79, in the 'extreme greed' range. From a technical perspective, Polkadot's price is well above its 200-day simple moving average ($5.82), with a premium of 78.67%, indicating strong long-term performance. Additionally, in the past month, the token has had 18 trading days in the green, with excellent liquidity performance.
With its strong interoperability, continuous technological upgrades, and extensive industry collaborations, Polkadot's future development prospects in the blockchain space are viewed positively. While there may be volatility in the short term, in the long run, Polkadot is expected to solidify its position as one of the top utility tokens and achieve sustained growth in the crypto space.
SHIB
The price of Shiba Inu has recently retreated from this month's high of $0.000033 to $0.000030. Nevertheless, positive factors remain, especially as the amount of Shiba Inu being burned has significantly increased, with millions of coins disappearing from market circulation, reducing supply. Meanwhile, technically, the 200-day and 50-day moving averages of Shiba Inu have formed a golden cross, a pattern typically viewed as a bullish signal, indicating the potential for an upward trend in the future.
Additionally, Shiba Inu has formed a classic cup and handle pattern, with the upper end located at $0.00004552, which is the highest price so far this year. This pattern suggests that SHIB's price is expected to continue rising in 2025 and may potentially break the historical high of $0.000088. Therefore, despite the current price retreat, the market remains optimistic about Shiba Inu's future trajectory, looking forward to greater growth in the upcoming period.
BONK
As the founding meme coin of Solana, Bonk has become one of the top cryptocurrencies to watch in 2025. While many meme coins have a relatively short lifespan, Bonk has sustained itself for two years since its launch and recently set a historical high.
The price of Bonk formed a golden cross in November, a technical indicator that drove its price up to a historic high of $0.000006. Meanwhile, Bonk also formed a classic cup and handle pattern and is currently in the handle portion. Additionally, the continuous increase in trading volume indicates strong investor demand.
Therefore, if Bonk breaks through this year's high of $0.000060, it could welcome a larger increase, with a target price of $0.000079, representing an approximate 90% increase from current levels.
