The choice after the big Whipsaw of BTC: potential race track + investment strategy analysis

In the face of the current market Fluctuation, what may happen next in the Cryptocurrency market? What investment strategies can be used as a reference? This article is based on the original work of Michael Chmielewski, translated and compiled by Block. (Background: Greenlight Capital warns: Cryptocurrency speculation bubble will burst "short strategy has been implemented", and the difficulty of realizing the US BTC reserve) (Background: BTC, Ether square, and Ripple coin price predictions: Analysis of the three major Cryptocurrency trends after Trump's inauguration) In the past week, the Cryptocurrency world has witnessed a historic event. We witnessed the most severe liquidation event in the history of the field, with reported amounts reaching an astonishing $23 billion. Unconfirmed reports indicate that due to the heavy API load of the trading platform, the liquidation amount may be as high as $10 billion. This dramatic collapse was immediately followed by a dramatic Rebound, with BTC and many altcoins rising by 20% to 30% in just a few hours. As the dust settles, investors and traders have to face a question: what will happen next? What caused the collapse? This collapse was triggered by a series of intertwined macroeconomic and geopolitical events. The Trump administration's reintroduction of radical tariff policies has unsettled global markets. Specifically, the announcement of a 15% tariff on US coal and liquefied natural gas products, as well as a 10% tariff on US crude oil, has sent shockwaves through risk assets such as Cryptocurrency. This news has become a catalyst for a large-scale liquidation chain reaction, forcing leveraged positions to be forcibly closed, further intensifying the downward pressure. The speed of this decline was unprecedented, highlighting the fragility of a market heavily reliant on leverage. Rebound: A case of extreme Fluctuation Interestingly, the market that collapsed under liquidation pressure quickly Rebounded after the announcement of a temporary tariff suspension protocol in the US, Canada, and Mexico. BTC soared from $91,000 to $102,000, while the Fluctuation of altcoins was even more dramatic, with some rising by more than 30%. This Fluctuation highlights the current market environment, which is driven more by news headlines than fundamentals. For traders, this is a gold mine; for long-term investors, it is a test of emotional resilience. Future: Where do we go from here? Although the worst of the decline may be over, the market is unlikely to experience a rapid V-shaped Rebound. Instead, we expect to enter a period of consolidation, where price Fluctuation may be more intense as the market digests recent events and awaits new catalysts. Key observations Weak structure of altcoins: Many altcoins still have a weak structure and face continued dumping pressure, especially from retail investors hoping to reduce position after recent losses. Emotional resilience of retail investors: Retail investor traders tend to avoid risk after experiencing significant losses, further suppressing demand for speculative assets. Sensitivity to news: The market remains highly sensitive to geopolitical events, especially regarding US-China trade relations and potential changes in monetary policy. Which categories of Cryptocurrency may rise next? Despite facing current resistance, several areas have shown relative strength and may lead the next Rebound: Real World Asset (RWA) Tokens: These tokens have shown resilience in the recent Fluctuation. Projects like ONDO and CHEX have shown strong price trends, implying increased confidence from investors in tokens supported by physical assets. AI-driven encryption projects: Artificial intelligence remains a hot topic, and projects like VIRTUL have shown strong fundamentals and increasing user adoption. With the continued development of AI technology, these tokens may have significant room for rise. Decentralized Finance (DeFi) protocols: Projects with a robust income model and strong community support in the Decentralized Finance space may outperform other projects. follow those that can continue to generate fees and innovate in lending, derivatives, and on-chain asset management protocols. Infrastructure Tokens: Tokens that provide key infrastructure for the encryption ecosystem, such as SOL (Solana), HBAR (Hedera), and HYPE (Hyperliquid), have shown impressive resilience and may benefit from a rebound in risk appetite. Selected meme coins: Although the meme coin frenzy has cooled down, mature names with strong community support like PEPE may experience a revival during a Bull Market. Actionable investment strategies Given the current market environment, here's a four-step plan to optimize your Cryptocurrency portfolio: 1) Trim underperforming assets: Evaluate your Holdings and reduce assets that you no longer favor, especially those that did not rebound strongly during the recent Rebound. 2) Focus investment on high-conviction projects: Focus on projects with strong fundamentals, clear use cases, and proven resilience. Diversify investments into potential areas such as Real World Assets (RWA), Artificial Intelligence (AI), and Decentralized Finance (DeFi). 3) Maintain an adequate reserve of stablecoins: Allocate 20% to 35% of your portfolio to stablecoins, which can provide flexibility for market retracement or emerging opportunities. 4) Maintain patience and formulate a strategy: Only enter new Positions during major liquidation events or confirmed trend reversals. Avoid chasing the price during bearish markets, and follow high-risk/high-return opportunities with clear technical and fundamental support. Conclusion The Cryptocurrency market is inherently characterized by high Fluctuation, but it is in this Fluctuation that opportunities lie. While the past week has been brutal for many, it has also provided valuable lessons about Risk Management, high-conviction investments, and maintaining adaptability. In moving forward, maintain discipline in following long-term trends, and be prepared for unexpected situations at all times. The next major opportunity often lurks around the corner, and the key is to be ready to seize it when it arrives. Related reports Trump's son calls: now is the best time to invest in the US Cryptocurrency, technology, and energy markets! SEC establishes "Cryptocurrency Working Group" led by encryption mom Hester Peirce: developing clear regulatory frameworks Whalepump is illegal! South Korea's first crackdown on Cryptocurrency Pump and Dump cases, the opening of the "Virtual Asset User Protection Act" BTC's big Whipsaw choice: potential race track + investment strategy analysis This article was first published on BlockTempo, the most influential Blockchain news media in the BlockTempo.