Recent market performance has been quite good.

The following points are what we need to understand.

Federal Reserve interest rate cut factors. The Federal Reserve's interest rate cut of 25 basis points this time aligns with our expectations from yesterday and was unanimously approved. Currently, the Federal Reserve's rate has been lowered to 4.5% - 4.75%. This rate cut follows a steady move after a 50 basis point cut in September, with no dissenting votes internally, indicating that annual rate cuts will continue. For the current trend of Bitcoin, this is undoubtedly a significant positive in the long term. We have also repeatedly emphasized that this year's upward trend benefits from the Federal Reserve's expectations of rate cuts and the positive impact after the rate cut takes effect!

The impact of the Trump effect. After Trump won the election, the price of spot gold fell sharply, as expected (while cryptocurrency rose), primarily due to market expectations of his future governance policies. The market anticipates that a series of his policies may drive up inflation and slow down the pace of interest rate cuts.

However, it is important to note that Trump will officially assume office on January 20, 2025, and the current President of the United States is still Biden. In other words, the implementation of Trump’s policies will take time; the current market conditions are mainly due to panic over future expectations. However, the impact of news on market conditions is only temporary and will not long-term influence the trend. Therefore, as the Trump effect gradually diminishes, prices will eventually return to their technical trends, which is also the reason we see the price correction this time.