On January 9, Bitcoin fell below the $89,500 mark, with bear sentiment dominating the market. Long liquidations reached new highs in recent weeks, accounting for over 90% of total liquidations. Meanwhile, positive signals are also emerging——Morgan Stanley officially submitted an Ethereum spot ETF application, which means traditional financial institutions now have increasingly smooth compliant channels for Ethereum exposure.

More notably, the U.S. "million Bitcoin reserve" plan has made new progress. Although the specific timeline for direct purchases remains unclear and the likelihood of near-term policy implementation is limited, such rhetoric itself is sending a strong signal——Bitcoin is becoming an option for nation-level asset allocation.

The current market is like a seesaw: retail investor liquidation washouts and institutional positioning signals are playing out simultaneously. The warmth of policy expectations and the amplitude of price fluctuations are offsetting each other. In the short term, this competition will continue intensely, but structurally speaking, support from institutions and policy levels is already being laid out.