This week has been extremely sensitive for the market.

Last week, the market was hovering around 110,000 for Bitcoin and about 4,000 for Ethereum. In just a week, prices starting with 9 nearly dropped below 3,000, and many investors are feeling very confused about the market. Some even say the entire market has fallen into a period of stagnation. This situation is reminiscent of the bullish frenzy we experienced earlier.

1. Government shutdown, capital withdrawal.
The U.S. government has now been shut down for 38 days. Initially, this was seen as a positive for the crypto market, but later it turned negative, with sentiment reversing multiple times. The crypto boom has ended, and it can no longer sustain higher prices or prolonged growth. Capital is flowing out, moving into government bonds, the US dollar, and other safe assets, leading to large-scale sell-offs and a rise in the US dollar index and bond prices.

2. Divergent views on interest rate cuts.
In the last rate cut meeting, it was clearly stated that there would be two rate cuts this year. However, after the recent cut, the Federal Reserve shifted from a dovish to a more hawkish stance. The outlook for future rate cuts remains uncertain, causing increased panic among investors.

3. Structural chart analysis—understanding through visuals.

Summary: Market liquidity is essential. A decline is a normal phenomenon and doesn’t necessarily mean the market is turning bad. Any upward trend requires a significant correction to stabilize the market. Therefore, we should consider buying on dips (spot prices between 2,900 and 3,200). The current decline is temporary. The main upward wave will gradually strengthen as capital flows in and government actions take effect. A new bullish cycle is about to begin.

Hello everyone, I am V1, and together we seek our own wealth in the market. (This article reflects personal opinions.)