On Monday morning, the crypto market started off hot, with Bitcoin soaring to $70,000 for the first time since mid-June. Unfortunately, the sell-off accelerated from evening to Tuesday morning. There were many negative factors in this decline, such as the Fed meeting, the UK statement, and the assumption that the ETF channel was selling due to increased trading volume. Now the United States has taken action.
This wave of decline should have confused many people, even me. The group members were still shouting that they would break the new high and continue to rush upward, and then a needle was inserted directly back to $6,6000. Bitcoin fluctuated like altcoins.
In fact, what I want to say is "this is completely normal". Players who have experienced the previous rounds of bull markets should know that whenever the Fed is about to enter a rate cut cycle, the financial market, that is, the crypto market, will be affected. The closer to the rate cut, the greater and more violent the market reaction will be. This is actually a good signal because it means that the bull market is getting closer and closer to us.
It is expected that the US will cut interest rates by 25 basis points in September and cut interest rates once more before the end of the year. Combining CPI data, speculation expectations on interest rate cuts, speculation expectations on the timing of the US election and other important node data, it is speculated that the biggest bull market in the cryptocurrency circle this year has begun!
