The interest rate decision result at midnight was a 25 basis point cut, but the market plummeted. Normally, after a rate cut, the market rises, but one statement from Powell has led to the current situation. The liquidation line for long positions in contracts is concentrated in the range of $98,000 - $104,000, and the price of Bitcoin has directly come to $98,500.
After such a big drop, the explicit information from the market is that the Federal Reserve originally expected to cut rates four times in 2025, but now it's expected to cut rates twice next year. The Federal Reserve Chairman said: We are not allowed to hold Bitcoin and we do not wish to change the law.
But you have to understand that market policies are not entirely decided by them. They also need to look at data. Words can be said casually, but policies cannot be decided carelessly; they must depend on data. Ultimately, whether rates will be cut next year still depends on various data.
He said this, Bitcoin is still Bitcoin, the market is still the market, nothing has changed, but the market is in turmoil, which is essentially because it has risen too much. It needs to drop a bit to clear out leverage.
I have said many times that every significant drop in a bull market is a good opportunity to enter.
Next, there are only the illiquid Christmas and New Year left, so wait patiently for the bottom-fishing opportunity!
As for what to buy at the bottom, it's still best to look for the previous strong narratives that haven't materialized.
I am optimistic about the market after Trump takes office from January to March next year. For stability, focus on ETH, BNB, SOL, etc. For a more aggressive approach, you can choose ACT, PNUT, etc.
For those seeking stability, the meme sector can choose: DOGE, PEPE, WIF, FLOKI, etc.
For public chains, choose some established ones that already have good popularity, like APT, SOL, SUI.
For the AI sector, choose FET, including WLD, but I am more optimistic about FET, as it has DWF as a market maker partner, making it less likely for the price to perform poorly.
For the DeFi sector, the first considerations are AAVE and COMP. We have zero cost for these. Friends who want to enter again should wait for a lower position. Additionally, MKR itself has no issues; it was just affected by Ethereum. If you don't have a stop-loss, you can hold it normally, control your position, and avoid contracts.
As for positions, it still depends on everyone's habits. Of course, Mr. Crab also suggests that everyone arrange reasonably. If you don't have enough allocation, you might as well pick a portion from the sectors above to lay out. As long as the fundamentals and projects are still operational, time will give you the answer and also bring you some wealth.
Opportunities and strategies for spot investment
MEME sector
WIF: The current price is around $2.2, suitable for buying in batches, with a short-term take-profit target of $4.
PEPE: The current price is around $0.000018, buy in batches, with a short-term take-profit target of $0.000026.
