The past 48 hours have been particularly eventful in the fast-moving world of cryptocurrency, with investor sentiment nervous ahead of the Federal Reserve’s interest rate decision, leading to large price swings.
Currently, we are on the eve of the Fed's rate cut cycle. Although the outlook is promising, the road ahead is full of challenges, and many people may fall during this period. This includes people affected by factors such as abnormal economic data, the Mentougou incident, and war conflicts.
The market correction a few days ago has already caused a group of people to be eliminated, and they were knocked out by the abnormal non-agricultural data. A group of people who shorted yesterday were also eliminated, and they were knocked out by the abnormal CPI data. Those who chased highs and went long were also knocked out by Powell’s speech yesterday.
In such a complex situation, how should we view the future market development and how should we operate? We need to think from the perspective of big dealers. Now, many altcoins have fallen to a relatively suitable position, inflation is falling, and interest rates will be cut at least once this year, and four times next year. Investment is speculation expectations. Considering that big dealers make money by buying chips at low prices and then pulling them up in the speculation of interest rate cuts, we should remain patient and hold valuable projects. If you buy valuable spot and don't chase high projects like PEPE, there is no need to panic. If you are doing contracts, you can consider reducing your position or switching to spot.
We should not fall in the darkness before dawn, so that we can see the sunshine the day after tomorrow.
Bitcoin (BTC) has experienced significant price volatility over the past 48 hours. Uncertainty over the Federal Reserve’s upcoming announcement caused a sharp drop in the value of Bitcoin, which fell to $66,000. However, the subsequent release of lower-than-expected inflation data spurred a short-lived recovery, pushing BTC to $69,900. Despite the Fed’s lack of interest rate changes, Bitcoin’s price stabilized at $68,000. Amid these fluctuations, several altcoins have shown resilience.
Uniswap (UNI) bucks the market trend
Uniswap’s native token UNI has shown a notable surge, trading at $10.05, up 11.66% in the past 24 hours. Despite the gains, UNI's weekly performance was still down 10%. Historically, UNI's price has been volatile following major announcements, and its current move could be a precursor to its all-time high (ATH) of $44.97.
Chainlink (LINK) Shows Positive Momentum
Chainlink (LINK) is also showing upward momentum, currently trading at $15.99, up 6.75% over the past day. With a market cap of over $9.388 billion and a 24-hour trading volume of $449 million, LINK has shown resilience. Despite a near 10% drop this week, LINK’s price is up 9.86% over the past week and 19% over the past month.
Solana (SOL) Continues to Rise
Another altcoin to watch, Solana (SOL), is up 3.65% following recent market volatility. Currently trading at $154.83, SOL has a market cap of over $71.46 billion and a 24-hour trading volume of $2.85 billion. Analysts speculate that SOL may continue its upward trend, mirroring its performance in the first quarter, in part due to the impact of meme coins on its network.
CRV lending liquidation causes price to plummet
From the weekly chart, CRV's trend is quite weak. Even without today's event, CRV has been hitting new lows. During the correction in April, other currencies did not hit new lows, but CRV broke new lows, which shows that its own trend is relatively fragile. Today's event only exacerbated this trend.
The strength of the trend can be seen in advance from the market. Without today's liquidation event, many people may not pay attention to this coin at all. The biggest difference between CRV and FTX and LUNA is that CRV is at the bottom, while the other two currencies are at the top. Based on this, the panic caused by the liquidation of CRV will not be as great as the previous two. After all, the price is at the bottom, and the impact on people who invest in CRV is relatively small.
In the short term, when the price drops to $0.2, many people are buying the dip. The main force will not miss such an opportunity and will take the opportunity to collect enough chips. However, if too many people take advantage of the fire and these people are not washed out, it will be difficult for the market to rise.
At this time, you must not speculate on contracts with a fluke mentality. You originally wanted to turn a bicycle into a motorcycle, but in the end, the bicycle is gone.
Today's article ends here. We are currently in a bull market, and the situation is turbulent. We share passwords every day. Follow Xiao Miao