Weekend activity risks escalate, Middle East situation becomes market focus

This week, the cryptocurrency market faces multiple challenges, from technical adjustments to geopolitical risks. Investors need to stay highly vigilant over the weekend. BTC has recently tested the $90,000 level repeatedly, with the current price at $90.16K (+2.33%), while ETH remains relatively resilient, holding steady above $3.02K. However, the key factor that may influence weekend activity could come from unexpected geopolitical risks beyond market expectations.

BTC Technical Pressure, Support Levels Under Scrutiny

Bitcoin’s recent rally has peaked and retreated this week, with the price briefly falling below the $90,000 mark before rebounding to around $91,000. This $91,000 level is quite critical but has been tested repeatedly since Wednesday, indicating that the short-term upward trend is weakening. Currently, BTC has fallen below the short-term downtrend line; if the decline continues, further downside risks may be triggered. In contrast, Ethereum has performed relatively well, staying above $3,100, with a better technical outlook than BTC. However, this resilience is not guaranteed—once BTC breaks below the $90,000 integer level, other cryptocurrencies may also be dragged down in tandem.

Meme Coin Frenzy Fades, Market Structure Issues Emerge

Recent community discussions have focused on two meme coins launched by Binance: “Binance Life” and “I Came.” Given that meme coins sparked a wave of enthusiasm in early January, Binance’s decision to list them at this time was a natural move. However, it coincided with an old market problem—the “listing dump” phenomenon has become a collective expectation among investors. This has led to poor price performance after the new coins’ launch, reflecting underlying issues: no matter how innovative the narrative, the market has formed a short-term mindset of “list and dump.” Such mentality is detrimental to the long-term healthy development of the crypto space.

Weekend Catalysts Abound, Geopolitical Risks Are the Primary Concern

This week also sees the upcoming release of non-farm payroll data, which historically triggers market speculation and volatility. However, the most noteworthy risk at present is not economic data but the escalating Middle East tensions. Recent media reports indicate that the U.S. is accelerating military deployments in the region, with expectations of possible military action against Iran over the weekend. Even more concerning are suspicious large bets on Polymarket predicting that Israel will launch an attack on Iran within January—suggesting insider information is betting on imminent conflict. If the Middle East situation worsens further, it could have a significant impact on global financial markets, including cryptocurrencies. During the weekend, investors should closely monitor geopolitical developments, maintain risk awareness, and prepare for potential market volatility.