"The quality of decision-making depends on the information you have and your ability to process that information. — Ray Dalio, Founder of Bridgewater Associates -- (Principles)"
The current price of Bitcoin is around $94,800. From a daily perspective, the Bitcoin candlestick pattern is a "bearish engulfing" pattern, indicating a weakening of selling momentum. Ethereum has also successfully found support after experiencing a 17% pullback.
Bitcoin may now be in a region of technical accumulation, even though the current price is above expectations from a few months ago. Low trading volume and market interest may signify an accumulation phase, especially for potential upward moves in altcoins.
In my previous article ("The Federal Reserve's Disappointment Backstabbed Trump, Bitcoin Plummets Below $100,000!") I stated that "Bitcoin's dominance is expected to decline, which may mean an altcoin bull market is coming":
"----Bitcoin's market dominance has fallen from a peak of 60% to 57%, which may indicate that certain altcoins could see a rise during Bitcoin's consolidation period."
Despite the recent sell-off in the crypto market, the three major stablecoins (USDT, USDC, and USDe) continue to attract significant inflows, indicating a sustained flow of stablecoins into the crypto market.
Currently, the total supply of stablecoins exceeds $210 billion, making it an important component of the global financial system. USDT ($138 billion) and USDC ($42 billion) dominate, with the use of stablecoins accelerating in payments and financial services.
The PCE (Personal Consumption Expenditures Price Index) — the inflation metric most closely watched by the Federal Reserve, showed a continuing trend of declining inflation as announced last week.
Additionally, MicroStrategy announced the purchase of 5,262 Bitcoins again, with a total expenditure of less than $1 billion, at an average purchase price of $106,662 per Bitcoin. This purchase is seen as a regular dollar-cost averaging investment before a Bitcoin price pullback, with relatively small impact.
Note: All content represents the author's personal views, is not investment advice, and should not be interpreted in any way as tax, accounting, legal, business, financial, or regulatory advice. You should seek independent legal and financial advice before making any investment decisions, including advice on tax consequences.
