Bitcoin’s 9% fall over three days raises concerns of a potential larger crash. As the market tries to stabilize, contrasting opinions between optimistic bulls and cautious traders create tension. Bulls view this as a temporary dip, while others predict deeper declines, leading to uncertainty about Bitcoin’s price direction in near future.

Factors intensifying market anxiety include the DOJ’s intent to sell 6.5 billion USD worth of BTC and a 383 million USD outflow from Binance’s stablecoin. These developments contribute to increased liquidity and heightened market caution, as investors prepare for possible shifts in Bitcoin’s market valuation.

Upcoming events, like Trump’s inauguration, along with broader macroeconomic trends, anchor the market’s caution. The dollar’s strength and rising Treasury yields may encourage investment in traditional assets like gold. This could detract attention from Bitcoin as a value store, adding layers of complexity to the cryptocurrency’s market prospects.