The crypto market is turbulent at the beginning of 2025, with Bitcoin facing downward pressure.

At the beginning of the new year, the crypto market has experienced volatility. Bitcoin quickly fell back after breaking through the $100,000 barrier, raising concerns in the market. On Tuesday during the U.S. trading session, Bitcoin dropped to a low of $92,600, down nearly 10% from Monday's high of over $102,000. Currently, Bitcoin is priced at $94,212.

Other cryptocurrencies have also seen declines. Ethereum has fallen back to $3300, Solana has dropped below $200, and altcoins are generally down by about 10%. This wave of declines has also affected the US stock market, with several leading mining companies' stock prices dropping by 5-8%.

Despite the decline being within a controllable range, market sentiment has noticeably cooled as the price of Bitcoin approaches the level at the beginning of the year. Some analysts even predict that Bitcoin may drop to $70,000 before the inauguration of the new president in the United States.

The recent decline is mainly influenced by several factors:

First, the US macroeconomic data exceeded expectations. The number of job openings in November JOLTS broke the 8 million mark, setting a new six-month high. The ISM services PMI in December also surpassed expectations, reaching 54.1. These impressive data might lead the Federal Reserve to maintain a hawkish stance and delay interest rate cuts.

Secondly, there is an increase in political uncertainty. Reports suggest that the incoming U.S. president may declare a "national economic emergency," paving the way for large-scale tariffs. This has raised concerns in the market about the global economic outlook.

In addition, the news that the U.S. Department of Justice was authorized to liquidate 69,370 Bitcoins for about $6.5 billion also put some pressure on the market.

However, there are also some positive factors. The lawsuit between Coinbase and the SEC has seen a turning point, which may benefit the clarification of crypto regulation. The change in CFTC chairmanship may also bring about crypto-friendly policies.

From the perspective of capital flow, institutional investors have increased their holdings at recent lows. Data shows that investors holding large amounts of Bitcoin have significantly accumulated when the price is below 95,000 dollars.

Overall, although market sentiment is pessimistic in the short term, the possibility of a significant drop in Bitcoin is low with institutional funds supporting it. The current support level for Bitcoin is around $95,000, and even if it falls, it may fluctuate above $90,000, with a low probability of dropping to $70,000-$80,000.

The next focus of the market is the U.S. non-farm payroll report for December, which will be released this Friday. Employment data will influence the Federal Reserve's policy direction and may become a key factor in determining the short-term direction of the market.