Author: 1912212.eth, Foresight News
The crypto market has been turbulent recently. After the Trump Meme Coin craze, the market's hot spots have cooled down, and capital inflow has slowed. Crypto players are fatigued by on-chain PvP. Today, Bitcoin briefly plunged from $105,000 to below $98,000, reaching a low of $97,777.77, a 24-hour drop of over 5.5%. Altcoins were dragged down, with AI/L1/L2/Staking/MEME tokens seeing significant declines. Investors' long-awaited alt-season has not arrived, and their wallet assets have shrunk considerably.
The reasons behind this drop and the subsequent market outlook have naturally become a major concern for investors. So, how do industry leaders and institutions view the current market situation?
Matrixport: A 10% Bitcoin Pullback Could Be a Strategic Buy-in Opportunity
Matrixport's daily chart observation states that since the bull market began at the end of 2022, Bitcoin has shown strong resilience, with 30-day price pullbacks rarely exceeding -10%, while bear market monthly declines often reach 30% or more.
Last week, Bitcoin approached the -10% correction level, which is typically viewed as the bottom of the current bull market consolidation. In contrast, the +40% surges in March and November 2024 are considered profit-taking opportunities.
Looking at the trend chart, Bitcoin is still in a bull market, and if the trend continues, the -10% correction could be a strategic buy-in opportunity.
Arthur Hayes: Predicts Bitcoin Will Correct to $70,000-$75,000 Before Reaching $250,000 by Year-End
BitMEX co-founder Arthur Hayes just published a forecast that "Bitcoin will experience a significant correction in the near term, with the price potentially dropping to the $70,000 to $75,000 range, accompanied by a minor financial crisis. As global central banks resume quantitative easing, injecting liquidity back into the market, Bitcoin will resume its upward trend and is expected to surge to $250,000 by the end of the year."
WhaleWire Founder: Japan's Rate Hike Causes US Stock Plunge, Arbitrage Traders Forced to Sell Assets to Repay Loans
WhaleWire founder Jacob King posted on social media that the main reason for the stock futures crash is that yen carry trade participants are forced to sell assets to repay loans, and this week could be very bloody.
Jacob explained that in August 2024, Japan will raise rates from 0.1% to 0.25%, triggering a flash crash. Now, Japan has raised rates to 0.5%, with the 2-year yield at 0.71%. Japan's higher rates are ending the yen carry trade, where investors borrow cheap yen to invest in other assets. Now, borrowing costs are rising, meaning they have to sell assets to repay loans.
Coindesk Analyst: BTC May Form a Double Top Pattern, Potentially Dropping to $75,000
According to Coindesk analyst Omkar Godbole, BTC may be forming a double top reversal pattern on the daily chart. As it failed to sustain above the December highs last week, BTC appears to have formed a double top, with the neckline support around $91,300. A break below the neckline support could trigger a drop towards $75,000.
Analyst Miles Deutscher: DeepSeek Panic Coupled with FOMC Hedging Could Be a Good Buy-the-Dip Opportunity
Renowned crypto analyst Miles Deutscher wrote that the DeepSeek panic coupled with FOMC hedging looks like a pretty decent buy-the-dip opportunity. Panic selling tends to provide better entry points than slow, grinding declines. He has set limit orders/TWAP orders.
Trader Alex Kruger: Market Sees Steep Drops When Facing Uncertainty Amid Low Liquidity
Trader Alex Kruger tweeted that the problem is that few truly understand how much the DeepSeek changes have impacted the market - this issue seems hard to quantify. When faced with uncertainty, people tend to reduce risk. When this happens in low liquidity conditions, the market can see violent downturns. We formed a local bottom when Bitcoin broke $98,000 (the market had already crashed by then). But this is not the dip I would choose to buy, except for short-term trading.
Alex Kruger said he is more inclined to short BTC above $100,000 (rather than now) and put his long-term investment plans on hold for the time being. It will be a very turbulent week, as the Fed, earnings season, and Trump's high-frequency media activity will all impact the market.
