Today (19th) at 3 AM, the Federal Reserve announced its interest rate decision, declaring a rate cut of 25 basis points, bringing the benchmark interest rate down to 4.25%–4.5%. However, due to the lower-than-expected reduction in next year's interest rate expectations, Bitcoin immediately entered a downward trend, plummeting from a high of $104,800 to a low of $100,000, with a short-term decline of 4.6%. At the time of writing, Bitcoin is reported at $98,936.
Another potential factor triggering the sell-off is that Fed Chairman Powell clearly stated at the FOMC press conference: 'We are not allowed to hold Bitcoin.' Regarding the legal issue of the Fed holding Bitcoin, he added: 'This is something Congress needs to decide; we have no intention of pushing for legal changes.'
Ethereum dipped to $3,617.
Similarly, Ethereum also started to decline after the interest rate decision was announced, falling from a high of $3,907, briefly dipping to $3,617, with a short-term decline of 6.8%. Before writing, it is reported at $3,589, down 6.45% in the last 24 hours.
In the last 24 hours, $702 million has been liquidated.
On the other hand, according to Coinglass data, in the past 24 hours, the total liquidation amount in the cryptocurrency market reached $702 million, with long positions liquidating at $608 million being the majority, and short positions liquidating at $93.57 million, with over 25,300 people being liquidated.
Next, attention should be focused on the Japanese monetary policy meeting on December 19 at 11 AM. Below are the key points summarizing the current market turbulence:
Core trading principle: It's not about who makes more, but about who lasts longer. Keep enough positions to respond to mainstream coin replenishment opportunities, and learn to persist amid market turbulence.
BTC trend: The daily peak divergence has been established, and the correction has not yet ended. Pay close attention to the two key support levels of 94,150 and 90,500.
ETH strategy: The short cycle has not stopped falling, with key support levels at 3,510 and 3,462. Set up positions cautiously, with a stop-loss point at 3,430.
Altcoin opportunities: ETH/BTC ratio is at a bottom, altcoins are about to drop to their limits. It is recommended to gradually accumulate leading projects in various sectors.
Historical pattern: After the past three FOMC meetings, Bitcoin's dominance has decreased, and altcoins generally rebound.
Altcoin season signal: The current situation may be the last drop before the start of the altcoin season. Remember not to panic sell and be patient.
ENA dynamics: Trump announces the purchase of ENA and reaches a partnership with BlackRock, suggesting waiting for the price to pull back to the 0.95-1u area before entering the market.
Although the market is stormy, opportunities are often hidden within the panic. Operate rationally and wait for the dawn.
Today's article ends here. Currently in a bull market, with winds and clouds swirling, we share codes every day. If you don't know what to do in a bull market, feel free to follow along. Bull market spot codes, layout strategies can be shared for free.
