Noise Means Nothing For Bitcoin

Jan 28, 2025

Markets always look for something to blame—a headline, a piece of news, anything—and then claim it's the reason why markets tanked. That’s all we saw yesterday. The S&P500 was off by almost 100 points, but let’s zoom out for a second. Over the previous trading days, the S&P gained 360 points. That’s a huge move and means we saw profit-taking, plain and simple. So for me, this was an expected pullback.

The ‘Panic Drop’ all started with news around AI—the cost of compute dropping significantly. Now, people are tying this to market movements. My view? This is bullish. The broader implications of AI becoming more accessible? That's positive for businesses as they could spend less on their AI developments. It has nothing to do with Bitcoin. If anything, this sort of development helps crypto adoption.

Bitcoin

Right now, Bitcoin is still range-bound, and as long as Bitcoin continues to trade in its range, there’s no need to panic. Could it dip further? Sure. It might even test the lower part of the range at $90k. But again, this is just the ebb and flow of a volatily asset.

A consolidation period here strengthens the foundation for the next big move. The late-November rally and subsequent December peak were massive. Time is needed to absorb those gains, flush out sellers, and build a sustainable bull market again. These things don’t happen overnight.

If Bitcoin stays range-bound into late February or even early March, we’ll have a solid two-to-three-month consolidation period. That’s exactly what you want after such a huge run-up. It allows for new buyers to come in and strengthens the overall market structure. Once this range resolves, we could see another leg higher, similar to past moves.

Altcoins

Altcoins got hit harder during this pullback. That’s the problem with altcoins—they show massive gains but come with extreme volatility. You have to be selective because many altcoins won’t outperform Bitcoin. Twice a week I scan for the strongest altcoins in the market. That’s how I got early on coins like RAY, OM, XRP and many more. But I also had to be quick enough to cut the losers that would drag down my portfolio.

If you don’t want to scan the market yourself, you can become a paid subscriber. I’ll do the work for you and send you a weekly list of the strongest altcoins in the market.

Bitcoin Dominance

Bitcoin dominance remains strong. It’s not fading, and we’re seeing this institutional phase continue to favor Bitcoin over other assets. As we move further into the cycle, speculative behavior around altcoins may pick up, but there’s no guarantee dominance will fall sharply.

In fact, dominance could trend sideways, which would imply the average altcoin won’t outperform Bitcoin. This is why a strong allocation to Bitcoin remains critical. While speculative plays in altcoins can deliver outsized returns, the selection risk is enormous.

Final Thought

This pullback we’re seeing? It’s noise. Bitcoin is still up over $10,000 from its recent lows, which is a 10% move in just a few weeks. That’s significant in itself.

The range we’re in right now is exactly where we should be. Let the market take its time. Let sellers clear out and new buyers step in. This is how a sustainable bull market forms—level by level.

As we move through February, this consolidation will set the stage for the next big run. So stay patient, stay focused, and don’t let the short-term noise shake you out of the bigger picture.