After Powell released his hawkish stance early yesterday morning, rejecting Bitcoin's strategic reserve plan and stating that the rate cut next year would be more cautious, the cryptocurrency market continued to collapse today (20), continuing the market panic of the previous day. Investor confidence suffered a heavy blow and mainstream currencies fell across the board.

After Bitcoin failed to hold the $100,000 mark early this morning, it quickly fell back to around $97,000. Although it briefly rebounded to $98,000, it still could not withstand the selling pressure and fell below $96,000. As of the time of writing, the price has rebounded to the $97,000 level.

This wave of decline did not have a waterfall effect, lasting a total of two days. Currently, long positions have been liquidated up to 1.4 billion, approaching the previous waterfall liquidation of 1.5 billion in a single day; this is the result of catching the tail end of the trend, but the difficulty lies in the fact that many people do not realize that it is the tail end, and they are still hoping for a return to a major upward trend without adjustments.

Currently, this wave of decline for Bitcoin should temporarily stop at 95, but the bottom of the fluctuations is still uncertain. It is expected to oscillate in the high range for a short time; the bull market is not over yet. However, there might be some risks in the next few days, and real opportunities may not arise until mid to late January. So, everyone should consider buying some spot assets now, as it's relatively safer; definitely avoid contracts, as they are too scary!

Will Trump's inauguration immediately create an economic miracle?

There is about a month left until Trump's inauguration. Due to the market's general expectation of rising inflation after his inauguration, Powell's hawkish statements after the Fed's 25 basis point rate cut have lowered the expectation of rate cuts to two 25 basis points in 2025, significantly below previous expectations.

Even the Federal Reserve has postponed its target of controlling inflation at 2% to 2027, which means the Fed believes that under Trump's administration, inflation will be highly uncertain.

Currently, Bitcoin's bull market is supported by ETFs and institutional funds represented by MSTR. However, despite the Fed's rate cut of 25 basis points this time, the financial environment remains tight. Since September, long-term bond yields and mortgage rates have been rising, and the appreciation of the dollar poses macro risks to Bitcoin because the dollar's appreciation is also related to the contraction of global money supply, which is often unfavorable for Bitcoin and other cryptocurrencies. The Fed's net liquidity continues to decrease.

With Christmas approaching and the end of the 2024 fiscal year coinciding with Trump's imminent inauguration, the capital market has already priced in; historically, the capital market tends to be relatively calm during this time window. Industry giant Arthur Hayes believes that the cryptocurrency market will experience a painful crash around January 20, 2025, during Trump's inauguration, followed by a buying opportunity.

In the near future, Bitcoin may maintain a large range of oscillation between 80,000 and 110,000, similar to the oscillation state of Bitcoin between 50,000 and 70,000 after March, until new events change this trend (black swan events, massive liquidity, strategic reserve assets, etc.). Altcoins are still in a bear market; this is just a rebound without ecology, new funds, or changes in fundamentals as VCs continue to unlock and cash out. Moreover, major platforms are continuously launching new coins, making it difficult for altcoins to have a trending market.

Endless declines? The market is reversing and picking up people! Is it a good opportunity to buy the dip?

In summary, the harder the market falls, the greater the opportunity: this is a chance to bet on a rebound. When the market is in a downward trend, appropriately buying more assets is equivalent to entering at a low price and waiting for future price rebounds. The underlying thought is simple—if you believe in the long-term value of a certain cryptocurrency, then buying during price drops can actually achieve the goal of 'buy low, sell high.'

But you should also know that this strategy is not without risks. In fact, it involves both gains and risks, requiring cautious operation. To achieve precise positioning, one must not only have a deep understanding of the assets themselves but also consider the overall market trends, changes in fundamentals, and technical support. Through reasonable risk control and strategy adjustments, one can maximize the opportunity to seize a rebound!

However, you must not be 'killed by flattery or blindly cut off'!

ORDI has become popular, and everyone has started trading SATS, claiming to seize the leading position;

GOAT has become popular, and the East has started to create ACT, while the West has launched FARTCOIN;

VIRTUAL has become popular, and various AI-related projects have quickly emerged.

As a result, retail investors chased until they were exhausted, and in the end, they were left with nothing but rags.

PVP games have been politicized to a large scale. If you want to operate simply, you can only focus on those top-level, visionary people and projects.



Early yesterday morning, Powell released a hawkish stance, rejecting the strategic reserve plan for Bitcoin and stating that the rate cuts next year will be more cautious. As a result, the cryptocurrency market continued to plummet today (20th), extending the market panic from the previous day, and investor confidence has been severely hit, with mainstream cryptocurrencies falling across the board.

Bitcoin attempted to stabilize at the 100,000 dollar mark early this morning but quickly fell back to around 97,000 dollars. Although it briefly rebounded to 98,000 dollars, it still couldn't withstand selling pressure and once dropped below 96,000 dollars. As of the time of writing, the price has risen back to the level of 97,000 dollars.

This wave of decline did not have a waterfall effect, lasting a total of two days. Currently, long positions have been liquidated up to 1.4 billion, approaching the previous waterfall liquidation of 1.5 billion in a single day; this is the result of catching the tail end of the trend, but the difficulty lies in the fact that many people do not realize that it is the tail end, and they are still hoping for a return to a major upward trend without adjustments.

Currently, this wave of decline for Bitcoin should temporarily stop at 95, but the bottom of the fluctuations is still uncertain. It is expected to oscillate in the high range for a short time; the bull market is not over yet. However, there might be some risks in the next few days, and real opportunities may not arise until mid to late January. So, everyone should consider buying some spot assets now, as it's relatively safer; definitely avoid contracts, as they are too scary!

Will Trump's inauguration immediately create an economic miracle?

There is about a month left until Trump's inauguration. Due to the market's general expectation of rising inflation after his inauguration, Powell's hawkish statements after the Fed's 25 basis point rate cut have lowered the expectation of rate cuts to two 25 basis points in 2025, significantly below previous expectations.

Even the Federal Reserve has postponed its target of controlling inflation at 2% to 2027, which means the Fed believes that under Trump's administration, inflation will be highly uncertain.

Currently, Bitcoin's bull market is supported by ETFs and institutional funds represented by MSTR. However, despite the Fed's rate cut of 25 basis points this time, the financial environment remains tight. Since September, long-term bond yields and mortgage rates have been rising, and the appreciation of the dollar poses macro risks to Bitcoin because the dollar's appreciation is also related to the contraction of global money supply, which is often unfavorable for Bitcoin and other cryptocurrencies. The Fed's net liquidity continues to decrease.

With Christmas approaching and the end of the 2024 fiscal year coinciding with Trump's imminent inauguration, the capital market has already priced in; historically, the capital market tends to be relatively calm during this time window. Industry giant Arthur Hayes believes that the cryptocurrency market will experience a painful crash around January 20, 2025, during Trump's inauguration, followed by a buying opportunity.

In the near future, Bitcoin may maintain a large range of oscillation between 80,000 and 110,000, similar to the oscillation state of Bitcoin between 50,000 and 70,000 after March, until new events change this trend (black swan events, massive liquidity, strategic reserve assets, etc.). Altcoins are still in a bear market; this is just a rebound without ecology, new funds, or changes in fundamentals as VCs continue to unlock and cash out. Moreover, major platforms are continuously launching new coins, making it difficult for altcoins to have a trending market.

Endless declines? The market is reversing and picking up people! Is it a good opportunity to buy the dip?

In summary, the harder the market falls, the greater the opportunity: this is a chance to bet on a rebound. When the market is in a downward trend, appropriately buying more assets is equivalent to entering at a low price and waiting for future price rebounds. The underlying thought is simple—if you believe in the long-term value of a certain cryptocurrency, then buying during price drops can actually achieve the goal of 'buy low, sell high.'

But you should also know that this strategy is not without risks. In fact, it involves both gains and risks, requiring cautious operation. To achieve precise positioning, one must not only have a deep understanding of the assets themselves but also consider the overall market trends, changes in fundamentals, and technical support. Through reasonable risk control and strategy adjustments, one can maximize the opportunity to seize a rebound!

However, you must not be 'killed by flattery or blindly cut off'!

ORDI has become popular, and everyone has started trading SATS, claiming to seize the leading position;

GOAT has become popular, and the East has started to create ACT, while the West has launched FARTCOIN;

VIRTUAL has become popular, and various AI-related projects have quickly emerged.

As a result, retail investors chased until they were exhausted, and in the end, they were left with nothing but rags.

PVP games have been politicized to a large scale. If you want to operate simply, you can only focus on those top-level, visionary people and projects.