Bitcoin's performance during the New Year period has sparked heated discussions in the market. Looking back at the 2025 trend, BTC surged to a historic high of over $126,000 in October, but then retraced to around $88,500 by the end of December, causing some investors to worry about the subsequent trajectory.

It is worth noting that this retracement is not a sign of systemic market deterioration. Renowned analyst Tom Lee recently stated that the current correction is actually a normal "digestive phase" before a major market breakout. Although he admits that his previous prediction of breaking $200,000 by the end of 2025 was overly optimistic, he remains optimistic about the upward momentum in January.

From a market mechanism perspective, January is often a key window for traditional financial institutions to readjust their investment portfolios. As year-end tax selling pressure subsides and new fiscal year budgets are released, these factors together are likely to lead institutional funds to reconsider allocations in digital assets. As the most risk-averse asset in the crypto market, BTC is particularly favored during this period.

If BTC can stabilize above the $100,000 mark in January, this signal will significantly boost market sentiment and could trigger a new wave of buying enthusiasm. Although the current situation faces short-term pressure, from a longer-term perspective, corrections often give rise to new opportunities. Market participants are advised to remain patient and observe the actual actions of institutional allocations in January.