Powell's words caused the Nasdaq to crash 3.61%, close to the biggest drop in recent years. And Powell's hawkish remarks were not limited to this. He also specifically criticized the cryptocurrency circle, saying that the Federal Reserve cannot hold Bitcoin, causing Bitcoin to fall by 5%. It was really bad.
This is a hard crash. No one can predict what he will say. It is really a sudden disaster. Not only retail investors, but also Wall Street can only stand at attention and take the beating. The main reason for this plunge is that Powell said that there will not be too many interest rate cuts next year, and there may only be two interest rate cuts, which has caused all kinds of assets to fall.
Actually, this drop isn't that complicated. I feel it just rose too much and is making a normal correction. This time, the correction was a bit fierce, and the reasons are as follows!
First, the Federal Reserve doesn't have the authority to purchase reserve Bitcoin; it's just a currency management institution, and the law doesn’t support it buying Bitcoin, which is not a legal tender.
Second, there are many people in this world who are not interested in Bitcoin. Have you been kneeling for so long that you are looking for validation everywhere? How long has it been for gold, and there are still people unwilling to buy it? Once everyone enters the Bitcoin market, it won't be as interesting anymore.
Third, one of the reasons for this drop is that the expectation of interest rate cuts over the next 25 years has decreased from 4 times to 2 times. However, that's not the main reason for this drop. More so, it's that both the U.S. stock market and Bitcoin had risen too much previously; the decline was simply necessary, and that's it.
You have to believe that the bull market won't end so quickly. Are you panicking because the Trump family is also caught in it?
The Trump family has 90% of their funds heavily invested in Ethereum and is already trapped. Even during a big drop yesterday, they were still buying coins, steadying themselves. Being trapped also means the U.S. President is trapped with you, so what's there to panic about?
This is the most equal experience you will ever have with the most powerful people in the world. Yesterday, even the Trump family dared to buy more despite the big drop. The retail investors' mentality has already improved significantly. There's no need to panic; just stay steady, and we can win.
Spot users have nothing to worry about. Just make adjustments for a month; Bitcoin's long-term trend has nothing to say, it keeps rising. I'm very optimistic about next year's market.
This year's market is just like this; next year will be even crazier. This year is just a rehearsal, and next year is the climax of this performance!