The volatility of the ETF market, including the short-term adjustment after the approval of the Bitcoin ETF, is a natural process of market consolidation. The callback phenomenon that often accompanies good news is normal. Taking the Bitcoin ETF as an example, the volatility of about two weeks after January 10 can be regarded as a healthy consolidation of the market. At present, the market focus is more on the results of the US election and the expectations of monetary policy adjustments, which has led to a shift in the market's focus from the original decentralized concept to the pursuit of macroeconomic news.
Since April this year, the market has undergone multiple rounds of adjustments and has shown a certain degree of fatigue. In this context, the continued consolidation phase may prompt investors to be cautious, but it may also mean that short-term fluctuations will tend to converge, because too long an adjustment period may weaken market participation.
In the face of the current situation, investors should remain vigilant. If market signals show that the bull market momentum is weakening, it is wise to reduce or clear positions in time. At the same time, a good investment strategy should be formulated, and after the market enters a more stable bear market phase, it will be gradually laid out and re-entered at a lower cost. In short, flexible response to market changes and rational analysis are the keys to successful investment.