Why has Bitcoin declined today? What will the future trend be?

The market is constantly changing, and Bitcoin is no exception.

According to Santiment, despite recent positive signs of whales transferring stablecoins to exchanges in the cryptocurrency market, the overall market sentiment remains cautious. This trend is encouraging, but it does not seem to have immediately reversed Bitcoin's downward momentum. In fact, historically, the fourth quarter has been a strong period for Bitcoin and altcoins, but this year's market appears to have entered a cooling phase. This may be related to market adjustments following halving events, such as the halving event expected in 2024, which has previously triggered anticipatory market reactions.

External factors intertwined, Bitcoin's future is uncertain.

In addition to the influence of market cycles, external factors such as global liquidity and government actions are quietly changing Bitcoin's fate. Janet Yellen recently announced that the U.S. will reach its debt ceiling in mid-January, which undoubtedly adds more uncertainty to the market. In the future, if more money printing and quantitative easing policies are implemented, it may bring a glimmer of hope to assets like Bitcoin. But before that, the market still faces many challenges.

Looking ahead, what will the trend of Bitcoin be?

Looking ahead, January may be a relatively calm month, with real market activity likely to kick off in February. Historical data shows that March is often a strong month, but April and May may fall into consolidation due to the tax season. However, with the arrival of summer, the market may warm up again and continue until the fourth quarter.

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