A new round of panic has begun, are you scared?

With the market crashing yesterday and today, many people are starting to get nervous, wondering: Has the bull market gone, and is there no hope for the cryptocurrency market? Watching the money in their accounts decrease day by day is really hard on the psyche. People start to worry about whether the market will continue to fall, feeling shaken, and even consider whether to cut losses.

Some people may regret, thinking how good it would have been if they had sold at a high point and then waited for the market to drop back to buy again. But when the market is bad, everyone’s emotions can easily drop and be filled with negativity. In fact, everyone must adjust their mindset and not let short-term fluctuations affect long-term decisions.

Looking back at history, just like the long-lasting bear market that lasted half a year this year, we’ve all made it through. Having experienced such a huge decline, it’s difficult to imagine it could be worse than that. Usually, before a major market event, the market will first go through a round of washing. The purpose of washing is to make those blindly following the trend sell their chips, providing better buying opportunities for the main funds.

Fill your confidence, let’s look at history

Come on, let’s give everyone a bit of confidence, let’s look at the historical data:

In January 2021, it rose by 14%, and in February it rose by 36%;

In January 2022, it dropped by 16%, and in February it rose by 12%;

In January 2023, it rose by 0.03%, and in February it rose by 22%;

In January 2024, it rose by 0.62%, and in February it rose by 43%;

In 2025, what will the result be? Let’s wait and see!

From historical data, BTC has risen at least 20% in February, and now that the market is correcting, isn’t it a great opportunity to gradually buy the dip? Wait another month, when February arrives, you will witness a wave of gains.

Regarding the news: Sale of $6.5 billion in Bitcoin

On January 9, there were reports that the U.S. Department of Justice had received approval to sell $6.5 billion worth of Bitcoin, which may also be a reason for the market drop. From the news perspective, in the remaining time, Trump has not taken office yet, and he cannot intervene in this matter, so this batch of Bitcoin may be sold soon. It seems that the sellers of these coins are in a hurry, but after all, Trump once promised not to sell these coins. Therefore, even if this is a short-term negative news, there’s no need to worry excessively in the long run.

After Trump officially takes office, the market's digestion issue may not be significant, and it might actually become an opportunity. After all, in the cryptocurrency world, risks and opportunities always coexist.

The ups and downs in the cryptocurrency market: washing and rebounding

The ups and downs in the cryptocurrency market are often 'slow rises and sharp drops', which usually occurs during market rebounds or rises. Simply put, this is an old trick of bull market washing.

When a coin has risen for several days, suddenly there’s a big drop, and the gains of those days disappear in an instant. This way, beginners and some investors who can't handle it will become scared and sell off their coins. This is the effect that the main funds want to achieve: to let the chips in retail investors' hands flow out.

Once the market falls to a certain extent and stabilizes, the coin price will gradually rise. When it rises to a certain height, trend-following investors will increase, and the main funds will once again take action, using a sudden drop to clear out some chips. This kind of sharp drop usually happens quickly, over a short period, potentially dropping 5%-10% in just a few days, and sometimes even deeper, 15%-20%. However, there’s no need to worry too much; the price generally stabilizes near important support levels.

Summary: Don't be afraid in panic

Overall, the current decline is not a systemic collapse in the cryptocurrency market, but a technical adjustment, with bubbles being squeezed. In fact, this may be preparing for Trump's ascension, and once he takes office, the market is likely to rebound, and the rally will begin, showing a stronger upward trend.

So, don’t be afraid, panic is just a short-term fluctuation, and after the adjustment, a rebound will come quickly.