“Crash Interpretation: Interest Rate Cut Expectations Fall Short + Powell's Remarks Undermine Market Confidence”

The recent crash of Bitcoin is primarily due to two major reasons:

1. Federal Reserve's interest rate cut expectations falling short: The market originally had high hopes for the interest rate cut plan next year, but the recent statements from the Federal Reserve indicated that the magnitude and pace of rate cuts may not be as aggressive, which not only put pressure on the U.S. stock market but also affected the cryptocurrency market. As a high-risk asset, Bitcoin naturally followed the U.S. stock market in its decline.

2. Powell's remarks undermine market confidence: Federal Reserve Chairman Powell clearly stated that they would not buy Bitcoin and would not push for changes in the law to support crypto assets. This undoubtedly has a certain impact on investor confidence, weakening expectations for further institutional involvement and significantly cooling bullish sentiment in the short term.

Although this news puts pressure on short-term trends, the core logic of the market has not fundamentally changed in the long run. The pullback is more likely to be a buildup for subsequent market movements, especially as large funds tend to lay low after cleaning up floating shares.

Investment advice: At this stage, maintain patience, focus on Bitcoin's key performance, and avoid blindly bottom-fishing. Market volatility is always the norm; rational responses will allow you to seize opportunities.

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