Is Bitcoin at $87,000 a bear market or a correction? Corporate allocations should be cautious—here's what to do to be wise

【Crypto Push】Recently, an analysis regarding corporate treasury allocation of Bitcoin has attracted attention. According to industry opinions, companies should not blindly bet on Bitcoin but instead set a clear allocation cap. Generally, keeping Bitcoin’s proportion within 1%-5% of treasury assets is considered a prudent approach.

How exactly to enter the market? Using dollar-cost averaging (DCA) is a good choice—dividing the investment into batches can effectively reduce risk. But there’s a prerequisite: if your intended investment exceeds 2% of your liquid funds, it’s better not to rush. Wait until the inflow of funds into Bitcoin ETFs turns positive before taking action.

Regarding the current market situation, Bitcoin has fallen from its high to $87,000. There is significant disagreement in the market about this correction. Some believe it’s the start of a deeper bear market, while others see it as a temporary pullback before a long-term rally. Additionally, gold and silver are performing well now, while cryptocurrencies are in a correction phase. Overall market sentiment is quite complex.

It is worth noting that Bitcoin’s sensitivity to loose monetary policy is often higher than to inflation data itself. Therefore, the focus should be on the Federal Reserve—especially the policy turning point from high interest rates to rate cuts, which could be a key trigger for Bitcoin’s price movement.