The result of the interest rate meeting in the early morning was a 25 basis point cut, but the market plummeted. Originally, the market would rise after the interest rate cut, but Powell's words led to the current situation. The liquidation line of long positions in contracts is most concentrated in the range of 98,000 to 104,000 US dollars, and the price of bitcoin has directly reached 98,500 US dollars.
With such a big drop, the explicit message from the market is that four interest rate cuts were originally expected in 2025, but now only two are expected next year. The Chairman of the Federal Reserve said: We are not allowed to own Bitcoin, and we do not want to change the law.
But you have to understand that they don't have the final say in the market. They also have to look at the data. They can say whatever they want, but they cannot make decisions casually. The decisions must be based on the data. How the interest rate cut will be next year still depends on various data.
He said this: Bitcoin is still Bitcoin, and the market is still the market; nothing has changed, but the market is a bloody storm because it has risen too much. It needs to drop a bit to clear out the leverage.
Let me recharge your faith:
What I want to say is that the bull market has just begun; Bitcoin is set to reach $150,000, ETH to $8,000, Doge to $1, and Pepe to 5 times. This rise will wash countless people out of the market. All we can do is allocate and wait; there’s really nothing else we can do.
This wealth will truly be given to those who persevere.
Can we buy the dip now?
I think there’s no need to rush to buy the dip; you can use a strategy of buying more on big drops, small buys on small drops, and not buying at all when the price doesn’t drop to gradually collect low-priced chips.
The current market situation is such that Bitcoin and Ethereum have support from spot ETFs and traditional large capital, so there is a significant amount of buying pressure below, so they won’t drop much.
However, most altcoins lack the support of large capital, and once they drop, there is no support level; it mainly depends on market sentiment.
Recently, new coins on Binance have also lost their profit effect; basically, after going online, prices have been falling all the way, and the speed of halving is getting faster.
When market liquidity is insufficient and sentiment is low, it is recommended to avoid new coin projects on Binance; we can primarily ambush those with long-term narratives.
From the current situation, if Bitcoin continues to pull back, altcoins may drop even more severely.
Therefore, at this time, it is essential to control your position well and to keep some funds ready to cope with days of illiquidity.
Next, there are only a few illiquid options left for Christmas and New Year; be patient and wait for bottom-buying opportunities!
As for what to buy on the dip, still look for the previously strong narratives that have not yet materialized.
I am optimistic about the market after Trump takes office from January to March next year. For stability, focus on ETH, BNB, SOL, etc. If you want to be aggressive, you can choose ACT, PNUT, etc.
For the more stable options, you can choose from the meme sector: DOGE, PEPE, WIF, FLOKI, etc.
For public chains, choose some established ones that already have good popularity, such as APT, SOL, and SUI.
The AI sector should choose FET, and including WLD is fine, but I am more optimistic about FET, after all, it has a partnership with DWF as a market maker, so the price shouldn't look too bad.
In the DeFi sector, the first choices to consider are still Aave and COMP. We have zero-cost positions in these, and those who want to re-enter should wait for lower levels. Additionally, MKR itself is not problematic; it's just been dragged down by Ethereum. If there are no stop losses, you can hold it normally, just control your position and avoid leveraged contracts.
As for position sizing, it still depends on each person’s habits. Of course, the Crab Boss also suggests that everyone arrange it reasonably. If your allocation is insufficient, you might as well pick a portion from the above sectors to layout. As long as the fundamentals and projects are still operating, time will give you the answer and some wealth.
Although the drop was significant in the early morning, the performance data of the ETH ETF can still give us confidence to see the craziness of the market ahead. Under such negative news for big brands, the data flowing out is somewhat expected, but BlackRock alone had an inflow of $80.7 million, supporting the entire ETH ETF net inflow while others were cutting losses, BlackRock was buying the dip.
Therefore, in the future, whether ETH breaks through its historical high, 5000, or 8000, it is just a matter of time; it’s the same plot as BTC. The CEO of BlackRock is personally involved in continuously supporting it, and behind this must be their long-term plan, which is absolute power. We need to have confidence.
Next, if ETH is to rise, it still needs to break through the previous trend line at 3850. Only by effectively stabilizing and increasing volume at this position can we see a higher Ethereum! Additionally, in January, there will be FTX compensation, with 16 billion U or fiat compensation this year, which will return to the crypto space to some extent. Coupled with the recovery of the US ETF, the market trend is still worth looking forward to; now is not the time to exit.
I've mentioned before that every major drop is a good opportunity to enter. Today is no exception. We are in a bull market cycle, but this year's market characteristic is quick and decisive; the pump is fast, and the dump is also fast. Without innovation or new narrative drivers, it’s hard for the market to sustain; everyone should adapt to this rhythm.
