The recent market movements are quite interesting. The declines in Bitcoin and Ethereum are indeed a bit nerve-wracking, but upon closer inspection, this drop is very similar to the previous time BTC hit 74,000 — both pointing to certain macro policy changes. However, behind this market crash, leverage and quantitative strategies are actually working together. When sentiment swings to extremes, these two forces tend to amplify each other.

Honestly, we might be close to the bottom. From a technical perspective, the 88,000 level for Bitcoin and 2,800 for Ethereum are worth paying attention to, as these points often serve as good entry windows. Data also confirms the market’s fear level — on January 16 and January 20, Bitcoin ETF saw net outflows of 394 million and 497 million USD respectively, and the Fear Index shot up to 25, indicating extreme fear.

If you want to take action, a small position to test the waters isn’t a big deal, but a safer approach is to wait until after the US stock market opens. This way, you can judge whether it’s truly the right time to intervene based on the actual US market trend, which can give you more peace of mind.