Trump's recent continuous remarks on tariffs have put obvious pressure on market sentiment. Bitcoin (BTC) has tested the key support level of $112,000 for the second time, and the defense strength of this position needs to be closely monitored. If Trump makes further tough statements, there is a risk that the price may further drop to around $100,000. However, there is no need for excessive panic: the continuous buying by listed companies and institutional investors has already formed an important market support force, and the overall trend's resilience has significantly increased compared to the past.
The altcoin market undoubtedly follows the market's pullback. A core issue in this round of market movement is that liquidity has not effectively flowed into the altcoin sector. Except for a few tokens that have received significant support from large crypto capital ('crypto consortium'), the vast majority of altcoins are facing severe liquidity challenges: insufficient trading depth and sluggish trading volume. Every market pullback leads to some funds being withdrawn from altcoins and not returning, which is a key reason for the continuous decline in many altcoin prices, hitting new lows.
This also explains why very few altcoins that performed well in previous bull markets have maintained strength in this cycle. The market dynamics are undergoing profound changes: the logic of this year's market is significantly different from past cycles, and each round may give rise to new narratives and investment paradigms. Investors must timely recognize changes, adjust strategies, and execute decisively to keep up with the market pace.
