As Bitcoin briefly returned to $89,000, investors remain cautious due to recurring patterns. The loss of two key levels has led to increased losses over several months. Altcoins are facing even tougher conditions. Thus, it is crucial to assess how the latest surge should be interpreted.
Bitcoin Surges Amidst Market Turmoil
Bitcoin’s Price Movement
Today at 22:00, the Federal Reserve’s meeting minutes will reveal details about this year’s third interest rate cut. Two Fed members opposed the cut, while most of the 19 members advised against further reductions. The details on monetary easing may offer support, but there’s no expected shift in sentiment since the pace of rate cuts has already been clarified.
Despite Bitcoin’s price reverting to $89,000 post-U.S. market opening, it continued to close under bear flag support over the past two weeks, showing little promise. Bitcoin has repeatedly tested the $90,000 mark, but short-term investors have consistently turned this into short-selling opportunities, leaving the outcome unchanged.
As this leading cryptocurrency approaches $90,000 yet again, investors ought to remain wary of falling into familiar traps. Concerns linger from the MSCI’s delist decision and the Supreme Court’s customs duty ruling, affecting initial weeks of the year. With investors already worried about these key developments, trading volumes remain low, U.S. investors take a selling position, and altcoins languish at support levels.
Timing of Altcoin Investments
The primary reason for investors incurring massive losses in cryptocurrency is the desire to “catch the bottom and top.” Therefore, we often hear stories of investors buying altcoins to reduce costs but instead amplifying their losses; this painful process is not unheard of.
Observing market momentum instead of catching peaks or troughs and adapting accordingly could be a more effective strategy. An analyst, known as DaanCrypto, reiterated his warning with the following chart.
“Altcoins experienced two brief upticks in performance within a year: late 2024 and September-October 2025.
During other periods, BTC led the rises and displayed the best performance in downturns.
Although there are exceptions, current leaders are struggling. The takeaway is that a ‘buy-and-hold’ strategy for a wide altcoin portfolio is not reliable. It hasn’t been for years.
While altcoins can be lucrative, being selective and timing investments when market conditions are favorable is crucial. It’s easier to capitalize on momentum than attempt to buy at rock-bottom prices for altcoins.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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