This week has inevitably entered the realm of the Christmas holiday. I previously did a statistic showing that Christmas does not necessarily lead to declines every time; the key is to observe the sentiment before Christmas. If the sentiment before Christmas is poor, it will indeed impact price movements due to low liquidity. However, this January has enough expectations, so I personally believe that investors are relatively rational. Even if they want to exit, many will wait until the inauguration.
In fact, the data shows that although today's price movement is not great, the BTC participating in turnover is at its lowest point recently, down 30% compared to yesterday. Remember how I have been saying this? It is already very difficult for investors to part with their holdings at low prices. It was like this at $65,000, and it is still like this now. After all, today we can still see that the support between $95,000 and $100,000 is still very solid, with no signs of being broken.
So, I still believe that after the "panic" from the Federal Reserve ends, the market will gradually correct its sentiment. Worried investors have been gradually exiting during the panic, leaving behind only short-term investors and those willing to take risks. Periodic fluctuations may not necessarily be a bad thing; after oscillating at $26,000 for eight months, it quickly surged to $73,000, and after oscillating at $65,000 for eight months, it quickly surged to $100,000. I prefer to describe the expected deleveraging process as washing out "weak" investors.
Moreover, I don't think there will be another eight months of fluctuations. After all, we have expectations for January, so let's see what real benefits Trump can bring to cryptocurrency.
Starting this week, liquidity will inevitably decrease, and even the purchasing power of ETFs may turn from net inflows to comprehensive net outflows. Prices may also temporarily break below concentrated areas of chips, but as long as this support is not broken, there shouldn't be major issues, and the trend has not ended.