This morning, the Federal Reserve announced a 25 basis point cut to the benchmark policy rate, bringing it to the range of 4.25%-4.5%. However, it hinted that the number of rate cuts in 2025 may be lower than previously expected. Powell described this shift as a 'new phase' of monetary policy and emphasized that after a 100 basis point cut in 2024, rates are now much closer to a neutral stance. Such a 'hawkish' signal.

Although this interest rate cut result met market expectations, the hawkish language in the statement and the adjustments to economic forecasts had a profound impact on market sentiment, causing both the US stock and cryptocurrency markets to plummet, with the crypto market experiencing a significant correction overall.

Bitcoin has fallen below $100,000 for the first time this week, and altcoins are also 'bleeding profusely'. Moreover, when asked about Bitcoin reserves, Powell stated, 'Currently, it is not allowed to hold Bitcoin, and there is no intention to change the law.' Is the policy bull market coming to an end, or are there other variable factors before Trump officially takes office?

Today's interest rate decision has also been announced.

Despite the hawkish remarks from the Fed causing panic in the financial markets, there was no interest rate hike here, and as of the time of writing, market sentiment has slightly eased, indicating that the bottom has already appeared, and it will slowly recover.

Overall, the market is filled with contradictions. At the current position, for some retail investors with correct positions, the impact is minimal and the decline is not large; for those heavily invested in some weak altcoins, it can be very painful.

I also want to remind everyone of a few points to consider in the face of significant information:

1. The proportion of long positions and pending orders should not exceed 15% of the account funds;

2. For positions with floating profits, set a break-even stop loss immediately to prevent the profit target from being reached and potentially turning floating gains into floating losses.

3. If it breaks below the defense point, reduce positions to maintain a margin of 10-15%. You can buy back at a lower price to lower the average cost. Some people think about cutting losses when slightly trapped in a long position, which is the worst strategy.

If this were a previous downturn, I would actively remind everyone that this is an opportunity. But looking at Bitcoin at $100,000, SOL over $200, and BNB at $700... this position is really contradictory, and this market is completely unpredictable, posing certain risks. All I can say is that both risk and opportunity are significant here.

The crypto market is facing ongoing adjustments.

Under the current macro backdrop, the cryptocurrency market may continue to face pressure in the short term. Whether mainstream assets like Bitcoin and Ethereum can hold key support levels will have a significant impact on market confidence. Meanwhile, altcoins like Solana and Dogecoin may experience more drastic fluctuations and are basically in a downturn, as these assets typically exhibit higher sensitivity to market volatility.

Powell repeatedly mentioned the uncertainty of the economic outlook during the press conference and reiterated that future policy adjustments would be data-driven. In the context of a complex global macro environment, investors need to carefully assess their allocation strategies for crypto assets and closely monitor the upcoming economic data to gauge the medium to long-term market trends.

Despite the current low market sentiment, this round of adjustments also provides strategic layout opportunities for patient long-term investors. The price corrections of mainstream crypto assets may lay the foundation for future rises, while some undervalued altcoins may see greater rebound potential when the market warms up.

In summary

This morning, after the Fed sent a 'hawkish' signal, market expectations for Bitcoin began to diverge, especially as the general bullish sentiment weakened before breaking the $100,000 mark. However, I still want to complain that typically after an interest rate cut, the market rises, but Powell's words have led to the current situation, with the liquidation line for long positions in contracts concentrated in the $98,000-$104,000 range, and Bitcoin's price directly reached $98,500.

But you need to understand that market policies are not solely dictated by them; they also need to look at data. Words can be thrown around casually, but strategies cannot be decided arbitrarily; strategies depend on data. Ultimately, how the interest rate cuts will be next year still depends on various data.

What I want to say is that the bull market has just begun, Bitcoin needs to reach $150,000, ETH needs to hit $8K, Doge needs to go to $1, and Pepe needs to increase fivefold.

This upward process will wash countless people out of the market. Apart from maintaining a good mindset, making proper allocations and waiting, we really can't do anything else.