Recently, the cryptocurrency market has been changing dramatically, like a small boat in a stormy sea, filled with uncertainty. On January 8, the price of Bitcoin plummeted suddenly, nearing the critical threshold of $96,000, causing an uproar in the market. Investment moguls who had closely followed Trump's trading strategies scrambled to withdraw in panic. In just one hour, the amount of long positions liquidated in the market exceeded $200 million, a shocking scene that made investors acutely feel the cruelty and ruthlessness of the market.
Just as the market fell into chaos, Musk's remarks acted like a heavy bomb, stirring up waves in the cryptocurrency circle. He publicly stated that if the newly formed government efficiency department can successfully curb inflation, then the prices of Bitcoin, Dogecoin, and other cryptocurrencies will face significant downward risks. As soon as this statement was made, it ignited heated discussions in the market, plunging investors into panic and confusion.
Looking back, when Musk supported Trump, the prices of Bitcoin and Dogecoin soared, and there was an optimistic mood in the market, with everyone firmly believing that under the influence of these two giants, cryptocurrencies would usher in unprecedented prosperity. However, reality dealt a heavy blow to investors, as the developments turned out to be much more complex than imagined.
Musk's remarks undoubtedly doused cold water on the fervent cryptocurrency market. He further explained that if the government efficiency department can effectively play its role and achieve significant results, the value of the dollar will rise accordingly. As the value of the dollar increases, the cost of purchasing cryptocurrencies with dollars will naturally decrease, which means that the prices of cryptocurrencies will face downward pressure. This logically clear statement, although sounding quite reasonable, filled investors with anxiety and unease.
Musk has always firmly opposed the government's reckless spending of funds; for this reason, he strongly supports the efficiency department formed by Trump. He even boldly predicts that this department could save the country up to $2 trillion. Interestingly, the English abbreviation of this department is very similar to the English name of Dogecoin, making every move of this department act like a barometer for the cryptocurrency market, closely tugging at the hearts of investors.
As of now, the price of Bitcoin has temporarily stabilized around $96,500. However, the pessimistic sentiment in the market is becoming increasingly strong, with most investors and analysts not optimistic about Bitcoin's future trends, believing that its price still has significant downward potential. Industry consensus holds that if Bitcoin cannot hold the critical support level of $95,195, the price is very likely to plummet to $90,000, and might even further drop to $87,055.
It is worth mentioning that on the Ethereum chain, the Musk-themed concept 'Dog PP' is rising dramatically, showing strong momentum. Currently, this concept has attracted as many as 15,000 holding addresses, highlighting its popularity. Many industry insiders boldly predict that 'Dog PP' is expected to replicate the glorious journey of SHIB, becoming another brilliant new star in the cryptocurrency market and stirring up new waves in the future market.#加密市场回调 #币安Alpha上新 #DeFAI热点 $SHIB $DOGE 
$PEPE
