The Federal Reserve cuts interest rates, yet $BTC plummets instead? Where are the retail investors' opportunities in altcoins? How will tonight's unemployment claims data affect the market?
First, let's talk about tonight's unemployment claims data; there's no need to focus on the news. The trend presented by the market indicates that after the news lands, an upward trend is expected, but as for how high it will go is still uncertain.
Currently, whether the altcoin pullback has reached the bottom still needs further observation.
Now, regarding last night's significant market drop:
In fact, I often say not to be influenced by the news; the news will only briefly reverse the existing trend or accelerate it, but it does not change the market's true direction.
Around 21:30 last night, I mentioned in my previous article that the Federal Reserve's interest rate cut was basically a done deal, but after the cut, the market may not necessarily experience a turnaround.
I also mentioned that in the crypto market after the interest rate cut, most altcoins could drop another 10-20% from their existing levels, and I would consider increasing my position.
Just a few hours later, this came true again.
The reason is that the market had already deteriorated before the news was released, eliminating a large number of trapped investors who were hoping to break even after the interest rate cut.
However, due to a lack of liquidity, the influx of new capital was insufficient to lift the market, resulting in positive news turning into negative circumstances.
As most people became aware of the situation too late, the positive news could not help them break even, and trapped investors faced shattered hopes and had to cut losses.
With the positive news landing, those who bought based on the good news ended up getting trapped instead, and panic increased, leading to a downward trend in the market.
So even though Powell mentioned last night that there would be more than 4 interest rate cuts in 2025, the market merely spiked slightly higher after the news and then reversed, continuing the downward trend.
Therefore, don't just listen to what the news says; observe how the market is performing.
In my personal view, my perspective on the major A-shares and the crypto market remains unchanged; both are on a bullish path, merely undergoing a deep weekly-level washout.
Although the current situation for altcoins is not optimistic, the main goal is to make retail investors abandon altcoins.
When retail investors become desperate about altcoins, combined with positive news like the packaging of ETFs for listing, a crazy market will officially begin.
This opinion is purely personal and for reference only!
