$BTC As the market expected, the Federal Reserve announced last night a 25 basis point rate cut in December, but during the meeting, Chairman Powell released a series of hawkish statements. First, he mentioned that next year the rate cut pace will slow down, expecting only two rate cuts throughout the year. The key takeaway was a statement that significantly impacts the crypto market: he said the Federal Reserve is not allowed to have BTC and does not wish to change this law. As a result of his remarks, BTC fell more than 5% this morning, with over $600 million liquidated across the network in 24 hours. The US stock market also saw a significant drop, evaporating $1.5 trillion.
Rafael tweeted that $97000 is a strong support level, and even if BTC continues to fall, it will stop when it reaches this position.
Spot ETFs have seen inflows for two consecutive weeks, and in the US market, the fund scale of BTC spot ETFs has surpassed that of gold ETFs. This is a milestone moment; it took 20 years for gold ETFs to reach their current scale since their launch in 2004, while BTC spot ETFs have surpassed gold ETFs' asset management scale in less than 12 months of operation.
The supply of stablecoins is also continuously setting new highs, with newly issued USDT flowing into major exchanges over the past two weeks, driving this wave of increase. In the past two weeks, the average daily inflow of USDT into exchanges exceeded $40 million, which is rare in the history of cryptocurrencies. A large amount of capital is entering the market through stablecoins. Historically, whenever new stablecoins flow heavily into exchanges, the crypto market tends to experience a subsequent rally.
With less than a month until a pro-crypto president and SEC chair take office next year, institutions, companies, and whales are continually accumulating BTC. A $100,000 BTC is just the beginning; historical cycles of BTC also show that next year will be the real bull market. Looking back at the current price a year from now will feel as cheap as looking back at last year's price at this time. Cherish every pullback before the crazy bull market kicks off; it's all a discount period. Don't let emotions lead you to be tricked off the wealth train by market manipulators before it starts! 😆