The cryptocurrency market is often significantly influenced by events in the political arena. Recently, the White House announced that Trump will make a statement at 4:30 PM Eastern Time on Wednesday, which quickly attracted the attention of cryptocurrency investors. This statement could have a major impact on short-term market trends, bringing potential risks as well as creating investment opportunities.

The content of Trump's statement will be a key factor influencing market sentiment. If the statement involves economic stimulus measures, such as increased fiscal spending or tax cuts, it could trigger a rise in inflation expectations. In this case, cryptocurrencies like Bitcoin, which are seen as anti-inflation assets, may be favored by investors, attracting safe-haven capital inflows, thereby driving prices up.

On the contrary, if the statement focuses on strengthening cryptocurrency regulation, the market may experience panic selling, leading to a drop in cryptocurrency prices. However, for investors looking for low entry opportunities, this emotion-driven sharp decline may create favorable buying opportunities. The key is to accurately determine whether the price has already reached the bottom of its actual value.

When assessing market reactions, trading volume is an important indicator. If Bitcoin experiences a decline before and after a statement is released, investors should closely monitor the trend of trading volume changes. When trading volume gradually decreases during a price decline, it may indicate that the selling pressure is weakening, and market participants are beginning to hold back on selling, which could be a signal that the price is about to stabilize.

However, if the trading volume continues to increase during the decline and the price constantly breaks through important support levels, it may indicate that panic is spreading. In this case, investors need to be more cautious and may need to wait for clearer signals to stop the decline, such as signs of declining trading volume and sideways consolidation at lower price levels.

Regardless of how the market reacts, investors should remain calm and make decisions based on their risk tolerance and investment strategy. By closely monitoring market dynamics and rationally analyzing various possibilities, one can seize potential investment opportunities in this uncertain market.