Yesterday, Bitcoin hit a new high, reaching $107,793.
This increase in Bitcoin is mainly due to MicroStrategy's stock being added to the NASDAQ 100 index, and their CEO Michael Saylor announcing a large increase in Bitcoin holdings.
MicroStrategy spent $1.5 billion yesterday to buy 15,350 BTC, with an average price of $100,386.
This indicates they believe that Bitcoin at $100,000 is just the beginning, so they continue to buy in large amounts.
However, in the short term, this Bitcoin increase is mainly driven by MicroStrategy, and this momentum may not last long.
If there is no new buying and FOMO sentiment, the market will have a demand for a pullback in the short term.
Especially under the influence of the Fed's meeting and the Christmas market, investors may have a risk-averse sentiment, and market liquidity may decrease.
Currently, it seems almost certain that the Fed will again cut rates by 25 basis points in December, but that does not mean the market will keep going up after the rate cut.
Because the Fed's expectations for a rate cut in 2025 may lead the market to be less optimistic about future trends.
In December, the latest dot plot will also be released, with the Fed expected to cut rates 2 to 4 more times in 2025.
In Powell's upcoming speech, he may reveal a more cautious attitude towards rate cuts.
Powell may start to manage market expectations, preventing the market from being overly optimistic and experiencing FOMO.
He may say that the Fed will conduct rate cuts in a limited manner in 2025, and may not even cut rates in January 2025.
If Powell sends out such signals, it may offset the positive effect of a 25 basis point rate cut in December, and could even bring further short-term bearishness.
Therefore, we need to focus on Powell's speech after the interest rate meeting, as it will directly affect short-term market sentiment and price movements.
Additionally, it is worth noting that FTX will start distributing $16 billion in compensation to creditors within 60 days of the record date on January 3.
Currently, two exchanges have started to support the compensation from FTX, mainly for fiat and stablecoin settlements.
This return of funds to users is a good thing, and some of the funds may re-enter the market, increasing liquidity.
Over $10 billion of new funds have entered the crypto market; let's see if it can push Bitcoin to break $110,000.
Among altcoins, most projects are being drained by Bitcoin, with a general decline of around 10%.
However, cat has performed the best, rising over 40% against the trend, mainly because it is about to be listed for spot trading on Binance.
Binance has recently frequently listed VC coins and MEME coins, almost draining the liquidity of altcoins.
Binance first listed the AI big data public chain Vana, but its trend is typical of VC coins: first a spike upwards, then a slow decline, and finally a halving sell-off.
Yesterday, Binance announced the listing of meme coins cat and pengu.
cat is the second subcoin of the floki airdrop, pengu is the token of the fat penguin NFT on the Solana chain.
Currently, all projects seem to be on the BSC chain, and market sentiment has not been stirred up.
However, we can pay attention to the market maker Wintermute.
This cat listing on Binance spot trading is aided by the market maker Wintermute.
cat has already been Wintermute's largest holding on the BSC chain half a month ago.
Recently, Wintermute has been accumulating AI meme coins, indicating that this may become the next trend.
Many high-quality on-chain projects have already been sold at a low price, and profits have been realized; it is time to start picking up low-priced chips.
