Affected by the Federal Reserve's expectation to lower interest rate cuts for 2025 on December 19, Bitcoin plummeted from a high of $104,829 to a low of $92,268 at 3 AM on the 19th, with a maximum drop of 12%.

However, with the release of the US November PCE data last night, Bitcoin rebounded slightly, trading at $96,688 at the time of writing, with a nearly 24-hour decline narrowed to 3.9%.

Looking back at the market, this round of decline lasted for 4 days, with 90% of cryptocurrencies falling in the first two days, and strong coins like SUI, USUAL, ENA, DOGE, PEPE, etc., also completing their declines in the last two days. After the differentiation between strong and weak, the market has limited downside space, and leading spot assets do not need to worry too much.

Market sentiment is a key indicator. Last night, many KOLs cut losses, and many advised against bottom-fishing, resulting in missed rebound opportunities, which is truly not worth the cost. Attention should be paid to opportunities in strong coins; weak coins have limited rebounds, while strong coins often rebound faster and higher even after a decline. Switching to strong coins during a downturn is a wise choice to position for potential rebound opportunities in the future.

CZ's mysterious prediction from four years ago re-emerges, sparking discussions

Despite the sluggish sentiment in the crypto market, Twitter user @WhaleFUD discovered that Binance founder Zhao Changpeng (CZ) posted a tweet on December 17, 2020, which seemed to have predicted Bitcoin's drop from $101,000 to $85,000. WhaleFUD even tagged CZ, requesting the tweet to be deleted, but CZ did not respond or delete the original post.

Interestingly, CZ posted a similar format tweet again in the past 24 hours, suggesting that Bitcoin will continue to set new historical highs: "Bitcoin creates historical new highs, once, once, again..."

This response brings some comfort to investors during the current market downturn. However, whether this prediction can come true and when Bitcoin will set new highs again remains uncertain.

Analyst: The Federal Reserve's policy will not hinder the upward trend of Bitcoin

Bitwise's Chief Information Officer Matt Hougan stated on Twitter that although the Federal Reserve's lowered interest rate expectations for next year triggered a market correction, it does not change the upward trend of Bitcoin. He believes that the short-term decline of the US stock market and Bitcoin is a normal reaction, but the intrinsic momentum of cryptocurrencies has gradually detached from dependence on the Federal Reserve's policies:

  • Washington's policy shifts to support cryptocurrencies

  • Institutional adoption and ETF fund flows continue to increase

  • Governments and enterprises begin to purchase Bitcoin

  • Significant breakthroughs in blockchain technology

Hougan concluded that this is just a minor episode in Bitcoin's upward journey, and the overall trend remains positive.