In the early hours of today, Powell stated that the Federal Reserve has no intention of participating in any government plans to hoard large amounts of cryptocurrency. Coupled with the Fed's meeting lowering the expectations for interest rate cuts next year, the cryptocurrency market plummeted as a result. Since breaking above 90,000, there have already been three rapid drops, and today's drop counts as the fourth. It can be said that the previous three rapid drops consumed a lot of buying power, so this time after the sharp drop, there were not many buy orders seen, but rather a decline after sideways trading, which effectively buried another wave of bottom-fishing funds. Therefore, in the short term, it will be relatively difficult to return to strength. Recently, the overall market enthusiasm has been too high. If nothing unexpected happens, this time the market, using the knife handed over by Powell, should be completing the most brutal washout just before the rapid altcoin bull market.
In the early hours of the 19th, after the Federal Reserve's interest rate decision was announced at 3 AM, Bitcoin began to enter a downward trend, with BTC plummeting from a high of $104,800 to a low of $100,303, a short-term drop of up to 4.3%. As of the time of this report, it is currently at $98,971, a nearly 24-hour decline of 5.85%.
A liquidation of $702 million in the past 24 hours.
On the other hand, according to data from Coinglass, the total liquidation amount in the cryptocurrency market over the past 24 hours reached $702 million, with long positions liquidating at $608 million, the majority, and short positions liquidating at $93.57 million, with over 25,300 people being liquidated.
A super crash of 20,000 points is still on the way.
The complete zeroing of altcoins makes the crypto circle feel very dangerous. Today, the U.S. core index, the S&P 500, dropped sharply, marking the worst and most violent drop in 20 years. If it enters a downward channel, all gains in altcoins will be wiped out.
Important Reminder
Stay cautious, after all, there is no fundamental change in the trend, and the policy is still moving toward monetary easing, although it will be slower, and the true impact of the U.S. elections has not yet erupted. I am very optimistic about the first month of the power transition on January 20, 2025, and within that month, there will also be the Q4 2024 financial reports, which combined will definitely be a time worth looking forward to.
Moreover, before January 20, my personal view is that one can buy high-quality assets on dips, such as BTC and ETH below the psychologically acceptable price. Everyone has different views on positioning; there is no definite standard. However, for me, I am not in a hurry to act. I still want to see if there will be an opportunity to act after Christmas. Of course, if there is a continued downward expansion, especially if BTC breaks (just if) $95,000, I will start building a position.
