$BTC

Reasons for Bitcoin Market Correction: After the Federal Reserve's hawkish interest rate cut, the cryptocurrency market as a whole has experienced a pullback. Federal Reserve Chairman Jerome Powell clearly stated at a press conference that although this rate cut met market expectations, the frequency and magnitude of future rate cuts may be far lower than previously assumed by the market, triggering market volatility.

• Impact of Trump's Policies: President Trump's term will be a key factor influencing the duration of this bull market. There are two possible development paths for the market: in the optimistic path, Trump will implement policies that promote economic growth, relax regulations, maintain low tariffs, and open immigration policies, which may lead to rising real interest rates, a strengthening dollar, and a rising stock market, but pressure on gold prices; in the pessimistic path, a trade war may break out, imposing a 60% tariff on China, with global tariffs of 10-20%, while tightening immigration policies, which will lead the Federal Reserve to ease policies and lower interest rates, resulting in a strong dollar followed by weakness, stock market adjustments, and a strengthening of gold. However, in either scenario, there are positive factors for cryptocurrencies.

• Return of the EVM Era: In 2024, on-chain growth will mainly focus on non-EVM ecosystems, especially Solana and Sui. This trend is expected to reverse in 2025, with new alternative EVM L1 public chains likely reaching a market value of $20 billion, and TVL expected to reach $10 billion.

• Market Volatility and Correction: The Federal Reserve has transmitted hawkish signals, triggering market volatility, and the cryptocurrency market as a whole has faced significant pullbacks. The prices of mainstream and altcoins such as Bitcoin, Ethereum, Dogecoin, and Solana have noticeably declined.

• Short-Term Outlook: In the macro context, the cryptocurrency market may continue to be under pressure in the short term. Whether mainstream assets like Bitcoin and Ethereum can hold key support levels will have a significant impact on market confidence.

• Opportunities for Long-Term Investors: Although current market sentiment is low, analysts generally believe that this round of adjustment also provides strategic layout opportunities for patient long-term investors. $BTC