The cryptocurrency market has fallen for three days, with BTC briefly dropping below a key level. The future trend is uncertain; how should we respond?

First, let’s look at the two major negative factors currently affecting the market. There is pessimism regarding the possibility of significant interest rate cuts by the Federal Reserve in 2025, leading to a rise in U.S. Treasury yields and a surge in the dollar index. However, it is worth noting that the market is already in a state of extreme pessimism. If future data continues to be unfavorable, it will only reinforce this expectation. Yet, extreme situations often lead to reversals; when things are at their most pessimistic, it may indicate a potential turnaround. As long as there is a downward trend in inflation, the cryptocurrency market can regroup.

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

In investing, we often say, 'Buy the rumor, Sell the news.' Buy during the rumor-driven downturn and sell when the good news materializes. From on-chain data, it seems that BTC inflow into exchanges is not significant right now, so it is advisable not to be overly pessimistic. When BTC approaches a key level, it may be a good opportunity to buy the dip. Of course, buying the dip requires caution, and I recommend a few cryptocurrencies worth watching: gt, bgb, sol, eth, doge.

Investing in the cryptocurrency market involves both risks and opportunities. We must remain calm and analyze rationally to find our opportunities 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!