Warning on the eve of the crypto market storm: a big correction may be seen in mid-January
Is the crypto market about to usher in a storm? Many market observers predict that there may be a big correction in mid-January! Behind this correction, two major reasons cannot be ignored:
On the one hand, the previous profitable funds need to withdraw from the market to digest their profits. After driving the market up, these funds often choose to cash out at the high point of the market, thus triggering a correction.
On the other hand, the Fed's interest rate cut trend may be suspended. Since the Fed began to cut interest rates on September 18, a large amount of funds have withdrawn from the US market and poured into the crypto market, driving this wave of rising prices. However, with the suspension of the interest rate cut trend, these funds may flow back to the traditional market, putting pressure on the crypto market.
According to the analysis of Bitcoin market observers, this correction may last about a month, and the specific time depends on market conditions. It is expected that the price of Bitcoin may fall to around 90,000, and Ethereum may fall to around 3,100. This forecast is based on current market conditions and historical data, but the specific trend still needs to pay close attention to market dynamics.
It is worth noting that the driving force of this round of rising market mainly comes from the high market sentiment brought about by the Fed's interest rate cuts and the new president's inauguration. However, with the end of the first phase of interest rate cuts, the market needs to pay attention to the second, third and even fourth phases of interest rate cuts, as well as their impact on the crypto market.
For investors, facing the upcoming correction, they should remain calm and rational. During the correction, you can pay attention to the dynamics and trends of the market and look for suitable investment opportunities. At the same time, you should also pay attention to risk management and avoid blindly following or over-trading.
In short, the crypto market is about to usher in a big correction, and investors should be prepared and pay close attention to market dynamics to deal with possible risks and opportunities