If you enjoy Sunny's content, follow, share, and like this article, and privately message me to receive free portfolio strategy layouts and a practical guide to naked K-line trading. A seasoned trader with "depth of thought, emotional warmth, and data-driven insights." WeChat: alpha6588

Reasons Behind Bitcoin's Plunge

On the macro policy front, Trump's signing of a tariff order on February 1 sparked fears of a trade war, prompting investors to dump risk assets. Additionally, diverging monetary policies at the Federal Reserve have increased investment risks. In terms of market conditions, the sharp decline in U.S. stock futures and the spread of pessimism in financial markets led to a collective crash in cryptocurrencies, exacerbating panic selling. Regulatory policies have also played a role, with countries tightening regulations and differing approaches. For instance, El Salvador's amendments to the Bitcoin Law have shaken investor confidence. On the trading front, the prevalence of high-leverage trading in the cryptocurrency market has forced investors to liquidate their positions during market reversals, creating a vicious cycle that drives prices down.

Currently, Bitcoin has shown some degree of rebound, indicating an improvement in market sentiment. If this positive sentiment persists, it could attract more capital into the market, further driving up Bitcoin prices.

When Will Altcoins Enter a Bull Market? What Conditions Are Needed?

The answer lies in clearing all contract leverage. Looking back at the 2017 bull market, the "94 Incident" wiped out all contract leverage, causing altcoin prices to plummet, only to be followed by a surge of tens or even hundreds of times. Similarly, during the 2021 bull market, the "312 Incident" cleared all contract leverage, which was quickly followed by an astonishing altcoin frenzy.

It is widely known that the cryptocurrency market operates on a 4-year cycle of bull and bear markets. The year 2025, which is this year, marks the expected timing of the next bull market. In recent days, contract leverage has been forcibly cleared, with the number of liquidations doubling that of the 312 Incident and the liquidation amount far exceeding those of both the 312 and 94 Incidents. This significant market downturn has thoroughly cleared out contract leverage, strongly suggesting that a large-scale bull market is on the horizon. Let us wait and see!

Strategies for Navigating the Current Bull Market

In the current bull market, the wise approach is to hold your ground, adjust positions flexibly, continuously optimize, and focus on exchange rate trading. In my view, trading strategy is the most critical factor, determining success or failure.

First, holding Bitcoin and analyzing its price fluctuations, along with the market dynamics of smaller cryptocurrencies, allows for a quick grasp of the overall market situation, enabling early positioning and seizing opportunities.

Second, when holding spot assets, the core strategy should focus on accurately timing the market bottom and leveraging the exchange rate fluctuations between Bitcoin and smaller cryptocurrencies to profit, rather than overemphasizing contracts, especially short-selling, which often carries significant risks.

Third, imagine if you successfully sold Bitcoin and smaller cryptocurrencies at high prices, holding over $100,000 in cash. Wouldn't this be the perfect time to buy the dip? In this scenario, your perception of the market, personal mindset, and trading confidence would be entirely different.

While trading strategies vary from person to person, I firmly believe that any strategy that generates profits is a good one. Skilled traders can precisely time the market, achieving perfect exits and entries. If such precision is challenging, holding Bitcoin patiently and waiting for market fluctuations is a viable alternative. After all, patience is one of the most powerful weapons in investing.

If you enjoy Sunny's content, follow, share, and like this article, and privately message me to receive free portfolio strategy layouts and a practical guide to naked K-line trading. A seasoned trader with "depth of thought, emotional warmth, and data-driven insights." WeChat: alpha6588

Reasons Behind Bitcoin's Plunge

On the macro policy front, Trump's signing of a tariff order on February 1 sparked fears of a trade war, prompting investors to dump risk assets. Additionally, diverging monetary policies at the Federal Reserve have increased investment risks. In terms of market conditions, the sharp decline in U.S. stock futures and the spread of pessimism in financial markets led to a collective crash in cryptocurrencies, exacerbating panic selling. Regulatory policies have also played a role, with countries tightening regulations and differing approaches. For instance, El Salvador's amendments to the Bitcoin Law have shaken investor confidence. On the trading front, the prevalence of high-leverage trading in the cryptocurrency market has forced investors to liquidate their positions during market reversals, creating a vicious cycle that drives prices down.

Currently, Bitcoin has shown some degree of rebound, indicating an improvement in market sentiment. If this positive sentiment persists, it could attract more capital into the market, further driving up Bitcoin prices.

When Will Altcoins Enter a Bull Market? What Conditions Are Needed?

The answer lies in clearing all contract leverage. Looking back at the 2017 bull market, the "94 Incident" wiped out all contract leverage, causing altcoin prices to plummet, only to be followed by a surge of tens or even hundreds of times. Similarly, during the 2021 bull market, the "312 Incident" cleared all contract leverage, which was quickly followed by an astonishing altcoin frenzy.

It is widely known that the cryptocurrency market operates on a 4-year cycle of bull and bear markets. The year 2025, which is this year, marks the expected timing of the next bull market. In recent days, contract leverage has been forcibly cleared, with the number of liquidations doubling that of the 312 Incident and the liquidation amount far exceeding those of both the 312 and 94 Incidents. This significant market downturn has thoroughly cleared out contract leverage, strongly suggesting that a large-scale bull market is on the horizon. Let us wait and see!

Strategies for Navigating the Current Bull Market

In the current bull market, the wise approach is to hold your ground, adjust positions flexibly, continuously optimize, and focus on exchange rate trading. In my view, trading strategy is the most critical factor, determining success or failure.

First, holding Bitcoin and analyzing its price fluctuations, along with the market dynamics of smaller cryptocurrencies, allows for a quick grasp of the overall market situation, enabling early positioning and seizing opportunities.

Second, when holding spot assets, the core strategy should focus on accurately timing the market bottom and leveraging the exchange rate fluctuations between Bitcoin and smaller cryptocurrencies to profit, rather than overemphasizing contracts, especially short-selling, which often carries significant risks.

Third, imagine if you successfully sold Bitcoin and smaller cryptocurrencies at high prices, holding over $100,000 in cash. Wouldn't this be the perfect time to buy the dip? In this scenario, your perception of the market, personal mindset, and trading confidence would be entirely different.

While trading strategies vary from person to person, I firmly believe that any strategy that generates profits is a good one. Skilled traders can precisely time the market, achieving perfect exits and entries. If such precision is challenging, holding Bitcoin patiently and waiting for market fluctuations is a viable alternative. After all, patience is one of the most powerful weapons in investing.