During the Christmas holiday, I had previously conducted a statistic that Christmas is not necessarily a time of decline; the key is to look at the sentiment before Christmas. If the sentiment before Christmas is poor, it can indeed affect the price trend due to low liquidity. However, this January has sufficient expectations, so I personally believe that investors are relatively rational. Even if they want to exit, most will wait until the inauguration.
In fact, the data (see the end of the article) shows that although today's price trend isn't great, the amount of BTC involved in trading is at its recent lowest. Compared to yesterday, it's down 30%. Do you remember what I have been saying? It's already very difficult for investors to part with their holdings at low prices. It was like this at $65,000, and it still is now. After all, today, we can still see solid support between $95,000 and $100,000, with no signs of damage.
Therefore, I still believe that after the Federal Reserve's "panic" ends, the market will gradually correct its sentiment. The worried investors have gradually exited during the panic, leaving behind either short-term investors or those willing to gamble. Periodic fluctuations may not necessarily be a bad thing. After fluctuating at $26,000 for eight months, it quickly rose to $73,000. After fluctuating at $65,000 for eight months, it quickly rose to $100,000. Expectations suggest a deleveraging process, but I prefer to describe it as cleaning out the "weak" investors.
Moreover, I don't think there will be eight months of fluctuations ahead. After all, we have expectations for January. Let's see what real benefits Trump can bring to cryptocurrency.
Starting next week, liquidity will inevitably decrease, and even the buying power of ETFs may shift from net inflows to comprehensive net outflows. Prices may intermittently fall below areas of concentrated holdings, but as long as this support is not broken, there won't be significant issues; the trend is not over.
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