Affected by the drop in the US stock market yesterday, the cryptocurrency market is following suit with a pullback. Bitcoin is fluctuating around $92,800, while Ethereum is fluctuating around $3,350. The market has been consistently declining recently, mainly due to insufficient liquidity, as US institutions and investors are still on Christmas holidays. Another reason is due to the Mentougou area. Over the past two weeks, addresses in Mentougou have been selling Bitcoin, totaling 1,338 coins worth approximately $123 million. They still hold more than 36,000 Bitcoins. However, this selling pressure has little impact on the market, which needs time to digest it. Think back to when Grayscale sold hundreds of thousands of Bitcoins; the market managed to hold up, let alone the tens of thousands from Mentougou.
The good news is that MicroStrategy announced yesterday that it spent about $209 million to buy 2,138 Bitcoins, with an average price of approximately $97,837 per coin. At the same time, Tether also bought 7,629 Bitcoins worth $705 million.
Since May 2023, Tether has been using 15% of its profits each quarter to buy Bitcoin, and now the total value of the Bitcoins they hold has reached $7.7 billion, making it the 6th largest BTC wallet address. This indicates that large institutions are still making significant purchases of Bitcoin. I myself have also been continuously bottom-fishing recently; I believe Bitcoin has reached a bottom range, and the current price is very attractive. The market is looking forward to Trump fulfilling his promises after taking office, so I am quite optimistic about the market in the first quarter of next year.
If Trump starts fulfilling his promises immediately upon taking office in 2025, the prices of Bitcoin and Ethereum may see a surge.
