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Article Summary: The article points out the impact of the rise of the VIX panic index on the global financial markets, as well as an analysis of the U.S. stock market and Bitcoin trends. Based on discussions of Trump’s policies and the state of the U.S. economy, it emphasizes the current market uncertainty and risks. Finally, it stresses the need to remain vigilant and conduct rational analysis and cautious decision-making in this market environment.

Trump's auto tariff measures have led to a fall in the stock market and the crypto market, with Bitcoin affected and unable to stabilize. The market is worried about rising inflation and increasing unemployment rates. There is a pessimistic attitude towards the future, as tariffs may trigger a more complex global trade situation. There is curiosity about Trump's upcoming reciprocal tariff policy, hoping to alleviate the uncertainty brought by the downward trend.

The price of bitcoin fell to $86,000 amid turmoil in the US stock and crypto markets due to Trump's tariff rhetoric, with the current key support level at $85,500. Bitcoin needs to break through the $88,000 resistance level and resume its uptrend. Spot fund inflows in the ETF market have increased for 10 consecutive days, with BlackRock Bitcoin spot ETF being the outperformer. Trump's announcement of 25% tariffs on cars has filled the global market with uncertainty.

The Federal Reserve kept interest rates unchanged and announced a slowdown in its balance sheet reduction measures, triggering optimistic sentiment in the market. Bitcoin's price has downside risks after filling the price gap, focusing on the range of $83,500 to $84,500. The crypto market experienced liquidations, with market losses exceeding $10.5 billion, but the deposit amount for tokenization of treasury products grew strongly, reaching a historic high, with an industry growth rate of 490%.

"The quality of decision making depends on the information you have and your ability to process it. - Ray Dalio, Founder of Bridgewater Associates - Principles"

The new year has brought a new recovery to the cryptocurrency market. Buying interest is returning, although the price of Bitcoin fell to below $92,000 during the Christmas holiday, it has now risen to close to over $97,000. The price has risen and exceeded the bullish resistance level of $97,200 mentioned in the previous article, indicating a short-term bullish trend recovery.

The market value of Bitcoin has reached $1.93 trillion and is expected to return to a market value of $2 trillion.

Currently, many altcoins also show strong potential for upward movement, with Bitcoin's market share in the cryptocurrency market dropping to 56.8%, indicating a more significant increase in the altcoin market, with funds beginning to overflow to other cryptocurrencies.

The quality of decision-making depends on the information you have and your ability to process it.
Bridgewater Associates founder: Ray Dalio - 'Principles'
At the time of writing this article, the price of Bitcoin, although below $100,000, is hovering around $98,300. However, as I mentioned in yesterday's article 'Christmas, Bitcoin to Rise?!': 'Low trading volume and market interest may signal an accumulation phase, especially for potential rise in altcoins.' Today's Christmas, the performance of Bitcoin and the crypto market is consistent with the forecast.
In my opinion, Bitcoin pullbacks are quite common in bull markets. Pullbacks simply provide opportunities for some professional and capable individuals or institutions to accumulate more Bitcoin.

Despite experiencing some outflows of funds in the week before Christmas, Bitcoin ultimately received a net inflow of $375 million, reflecting that market sentiment was not as pessimistic as expected.

"The quality of decision-making depends on the information you have and your ability to process it." - Ray Dalio, Founder of Bridgewater Associates - "Principles"
The current Bitcoin price is around $94,800, and from the daily timeframe, the Bitcoin candlestick is in a "bearish engulfing" pattern, showing a weakening of selling momentum. Ethereum also managed to find support after a wave of 17% pullbacks.
Bitcoin may now be in a technically accumulative area, despite the current price being higher than expected a few months ago. Low trading volume and market interest may signal an accumulation phase, especially for potential rises in altcoins.

In my previous article “”The Fed’s disappointment and betrayal of Trump, Bitcoin crashes below $100,000!”, the view that “the dominance of Bitcoin will decline, possibly meaning that altcoins will usher in a bull market” is consistent:
The market dominance of Bitcoin----

The quality of decision-making depends on the information you have and your ability to process it. - Ray Dalio, founder of Bridgewater Associates, Principles.

This week, the price of Bitcoin fell below $100,000, and I believe that this decline is a healthy and effective adjustment, which is a common phenomenon in bull markets. In previous cycles, the cryptocurrency market often experienced sharp corrections, which helped to digest the risks of excessive speculation and lay the foundation for future growth.

The structure of the Bitcoin price trend is still intact, with no substantial changes, still above the trend line, so the previous view is still maintained!

Bitcoin Short-Term Holders Realized Price (STH-RP)——

The quality of decision-making depends on the information you have and your ability to process it. - Ray Dalio, founder of Bridgewater Associates, 'Principles'.
In previous articles, it has been "advised speculators to avoid highly leveraged trading in order to reduce risk". In the last 24 hours, a total of 428,547 people were liquidated in the cryptocurrency market, with a total liquidation amount of $1.402 billion!
Bitcoin spot ETF saw net outflows for the first time in 15 days, totaling $672 million. On the positive side, BlackRock spot ETF did not experience net outflows of funds.
The Ethereum spot ETF is no exception, with a total outflow of $60.47 million, ending the 18-day streak of capital inflows.
When writing this article, the US PCE was announced.

The quality of your decisions depends on the information you have and your ability to process that information. - Ray Dalio, Founder of Bridgewater Associates - "Principles"
Bitcoin has once again hit a new all-time high (ATH) of $106,500 in such a short period of time, and professional financial institutions and investors continue to be bullish on investing in Bitcoin.
Financial institutions and major corporations continue to increase their acceptance of Bitcoin, global regulatory policies are gradually maturing, the advancement of blockchain technology has improved the practicality of Bitcoin, and factors such as the possible supply shortage caused by the halving event are driving Bitcoin to repeatedly set new highs. In addition, strong stock market performance, especially the excellent performance of the Nasdaq index, also supported the rise of Bitcoin. Appreciable chart.
Ethereum once again broke through the $4,000 mark while Bitcoin set a new high. With the ETH/BTC ratio at .

The quality of decision-making depends on the information you have and your ability to process it. - Ray Dalio, founder of Bridgewater Associates - 'Principles'
The price of Bitcoin has successfully stabilized above $100,000, rebounding after a slight correction, accompanied by a $1.1 billion liquidation.
At the time of writing, the price of Bitcoin is $102,800. The current valid support level for Bitcoin is $100,700-100,800. If it falls below this support level range and continues to stay below this range, it will expose downside risks.

Despite the price increase, some investors still remain cautious, leading to a tendency for some investors to trade bitcoin spot contracts.

BTC price Fluctuation, with a clearing volume of nearly 334 million US dollars in the past 24 hours, but still maintaining a high level. Solana has hit a new all-time high, with its DEX volume significantly surpassing Ethereum. Multiple Solana spot ETFs have been listed in the United States, attracting the attention of mainstream investors to Solana and other L1 chain projects. Personal opinion, not investment advice.

The BTC price is facing a challenge of psychological resistance at $100,000. The market is characterized by strong greed, indicating a possible pullback. However, in a Bull Market, a moderate pullback can be considered normal and healthy. It is expected that the psychological resistance level will be broken by the end of 2024. Compared to the previous three Halving cycles in BTC history, this trend is clearly behind. In a high inflation environment, investors are more inclined towards hard assets. Currently, there is still a high correlation between BTC and stock prices. The US Blockchain Association urges Trump to take action to support the encryption industry in the US during his term.