On January 9, 2025, altcoins experienced a continuous decline throughout the day, while Bitcoin remained steady at a high price of 90,000, with a significant divergence in their trends, which is extremely rare. Altcoins have bid farewell to the bull market and entered a downward trend, new coins have shallow foundations, and major players from established altcoins have withdrawn, leaving only retail investors struggling to hold on. In the future, caution is advised when buying the dip on altcoins; do not go in heavily.
At this time, news has emerged that the U.S. government has been approved to sell 69,000 seized Bitcoins, valued at approximately 6.5 billion USD. It seems significant, but in reality, it is old news. Referring to Germany's precedent in selling coins, if they were to sell, they would likely contact market makers discreetly rather than making a big announcement. Therefore, this is highly likely a method for short sellers to suppress the market. Moreover, Trump is about to take office; how could government officials be in a rush to sell Bitcoin?
Trump's policies post-inauguration are a new expectation for the cryptocurrency space. During his campaign, he showed favor towards cryptocurrencies, mentioning pardons for relevant individuals and the idea of creating a 'Bitcoin National Reserve.' Once in office, if his policies are friendly towards cryptocurrencies, the crypto space will welcome new opportunities, and funds will rush in.
In terms of market conditions, comprehensive judgment suggests that this wave of decline is nearing a short-term low point. Bitcoin's daily support is around 90,000, Ethereum is approximately 3,200, and swing traders may consider entering the market for a rebound at this moment. However, it is important to understand that support levels are not unbreakable; the market is volatile. But as long as there is confidence in next year's bull market, buying on dips is feasible. Even if the short-term rebound fails, waiting for the bull market will still be a viable strategy.
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