Why did the market fall last night? Will it continue to fall?

The market is actually driven by buying and selling sentiment. Whether it is institutions, market makers or ordinary investors, they are affected by different information every day, especially the macroeconomic data of the United States. Now there is still some time before the US election, so the market speculation sentiment is not strong. It is these macroeconomic information that can directly affect market sentiment.

Now is the interest rate cut cycle, market sentiment is more sensitive

We are currently in a rate cut cycle, which means that if there are more than two negative news of rate cuts, the market may panic, resulting in more selling than buying. This change in sentiment will directly affect the price of mainstream coins like Bitcoin, and altcoins will be even worse because they do not have enough liquidity.

On-chain data and sentiment are also important

Although on-chain activities are not completely consistent with BTC trends, the popularity of the on-chain market also needs to be supported by a good sentiment. If the market sentiment is not good, the performance of on-chain data will also be affected, making it difficult to be optimistic.

Short-term volatility and different preferences of investors

Of course, before the big trend is fully formed, some investors may choose to make short-term operations to earn quick profits. This phenomenon is particularly common in volatile markets, because the market itself is in a state of volatility. Therefore, although the market is volatile, it is not wrong.

The current market is similar to the situation around Christmas.

The current market situation is actually similar to that before Christmas. As I mentioned before, what other macro information will affect market sentiment in the future? Is buying greater than selling, or selling greater than buying? These will directly affect the demand for Bitcoin, and thus affect the rise and fall of altcoins.

Will it fall next?

Many friends asked whether the market will continue to fall. In fact, there will be some important economic data this week, such as non-agricultural data and unemployment rate. If these data are conducive to continued interest rate cuts, the market may rebound and prices may rise; on the contrary, if the data is not good, it may aggravate the market's decline. Therefore, we can expect the impact of some data, but changes in market sentiment are difficult to predict. What we can do is to make the best trading strategy to ensure the maximum benefit of personal positions. Although this is difficult, because market sentiment is often anti-human.

Summarize

However, it must be said that although market sentiment is difficult to predict, the impact of the macro economy will temporarily take second place in the context of the transfer of power and policy changes in the United States. The transfer of power on January 20, 2025 is still worth looking at with optimism. However, during this transition period, the market may experience some volatility and grinding moments.

Today's article ends here. Welcome to the homepage to play together~

Investing involves risks. The above content is personal sharing and does not constitute investment advice!