The cryptocurrency market has experienced a significant drop for three days, with BTC briefly falling below a critical price level. The future trend is uncertain; how should we respond?

First, let’s look at the two major negative factors currently at play. The market is pessimistic about the possibility of the Federal Reserve significantly lowering interest rates in 2025, leading to a rise in U.S. Treasury yields and a surge in the dollar index. However, it's worth noting that the market is already in a state of the most pessimistic expectations. If future data continues to be unfavorable, it will only reinforce this expectation. But extremes often lead to reversals; reaching the peak of pessimism may indicate a potential future turnaround. As long as there is a downward trend in inflation, the cryptocurrency market can regroup.

Now, let’s consider another negative factor: there are rumors that the U.S. Department of Justice has approved the sale of a large amount of BTC. However, this is just a rumor, lacking solid evidence or statements. Moreover, Trump is about to take office again, and he has promised that the U.S. government cannot sell BTC, so this negative news may not exist.

In investing, we often say, 'Buy the rumor, Sell the news.' Buy during negative rumors and sell when good news is confirmed. From on-chain data, there isn’t much BTC flowing into exchanges currently, so I suggest not being overly pessimistic. If BTC drops to a critical price level, it can be a good opportunity to buy the dip. Of course, buying the dip requires caution, and I recommend a few cryptocurrencies worth paying attention to: gt bgb sol eth doge.

Investing in the cryptocurrency market comes with both risks and opportunities. We must remain calm and analyze rationally to find opportunities that belong to us amidst the volatility. What are your thoughts on the future trend of the cryptocurrency market? Feel free to share your ideas in the comments section, and let’s discuss together.