Arweave TX
Introduction
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Today's Crypto Market: Uncertainty and Volatility
The crypto market continues to be shrouded in uncertainty, showing a complex and volatile situation. At the end of this week, Bitcoin (BTC) is hovering around $85,000, while altcoins are experiencing frequent fluctuations. Even meme coins were not spared on Saturday, with many entering a downward trend. Against this backdrop, Ethena stood out with a notable upward movement. Despite recent announcements of Bitcoin and crypto reserve plans by the U.S. and a crypto summit hosted by President Donald Trump, these bullish signals failed to immediately boost the market. Bitcoin and altcoins still saw significant declines on the day, with market concerns further spreading.
Bitcoin Price Today
In the past 24 hours, BTC has fallen by 1.5%, trading at $86,113. According to Coinglass data, this decline aligns with $298.7 million in BTC market liquidations. Additionally, Bitcoin's market dominance has slipped by 0.08% to 60.27%, indicating that altcoins are struggling in relative weakness.
Ethereum Price Today
ETH has seen a minor 0.5% drop over the past 24 hours, closing at $2,137. The token touched a low of $2,107.73 and a high of $2,254.23 during the day. Ethereum's decline corresponds with $57.14 million in liquidations over the past 24 hours. Moreover, ETH's market dominance remains at 9.1% today.
Recap of Last Night's Crypto Summit: Three Core Points
Strategic Bitcoin Reserve and U.S. Digital Asset Reserve Establishment
Regulatory Relaxation: The government has begun to revoke investigations and lawsuits against the crypto industry and is pushing the Senate to repeal rules from the Biden era, such as requiring certain crypto businesses to report information to the IRS. These actions are seen as supportive of the industry (Washington Post).
Industry Participation and Support: The summit saw active participation from industry leaders, with Trump fulfilling his campaign promise to make the U.S. the "capital of crypto" (CNBC). However, many believe this was more of a show of mutual praise.
Navigating the Challenging Crypto Market
Bitcoin Enters the Institutional Era
Bitcoin has entered an institutional market phase. Given its market cap and volatility, it now relies on institutions and government support to drive its value higher. Retail investors will gradually be left behind, while Bitcoin's trend and fluctuations will become more akin to those of the U.S. stock market, serving as a complement to gold in wealth storage. Therefore, it is essential to hold a significant position in Bitcoin, at least over 50%.
Altcoin Prospects
Many hope for a return of altcoins, possibly by the end of the year. However, there is a real risk of them becoming "penny stocks," similar to what is seen in the U.S. and Hong Kong stock markets, with only a few dominant players and the rest remaining low in market value and wealth effect. Even if a return happens, it might be the last cycle. Therefore, each rebound should be seen as an opportunity to sell, retaining only a small position for high-growth potential.
Market Predictions for 2025
Based on current trends and Bitcoin's market cap, there are expected to be two more breakouts this year, with approximately 30-40% gains, reaching around $130,000 and $180,000, respectively. These will likely be followed by periods of decline and consolidation, similar to what was seen in February and March, to weed out less committed retail investors. However, the drawdowns will not be as severe as before, and the market will likely follow a long-term upward trend like the U.S. stock market. The two potential rallies are likely to be driven by substantial progress in government crypto reserves and interest rate cuts by the Federal Reserve.
What Should We Do in the Increasingly Challenging Crypto Market?
Maintain Adequate Cash Flow: Survival is crucial in a tough cycle. Opportunities will always arise, but you need the funds to capitalize on them.
Reduce Trading Frequency and Manage Risk: In a highly volatile market, less action often means less loss.
Try Information-Driven Trades: News-driven opportunities are the simplest. Analyze the impact and take quick profits, as seen with $ADA recently, which was a perfect opportunity.
Rest and Adjust, but Stay Alert: During downtimes, avoid unnecessary trades, which can lead to quicker losses. Take breaks, but also explore new opportunities with small bets, aiming for high returns.
