Powell's speech triggered market turbulence, opportunities for Doge and ETH are here!
The Federal Reserve announced a 25 basis point rate cut after the December meeting, but the market reaction was quite unexpected, with the Nasdaq plunging 3.61% and $BTC dropping 5%. Powell's hawkish comments acted as a catalyst, especially his statement that the Federal Reserve cannot hold Bitcoin, which really shook the entire market!
Why did the market crash?
Mainly because Powell indicated that there might only be two rate cuts next year, rather than the continuous easing the market expected. This caused the asset market to hit the brakes hard. But brothers, don't panic, this crash is not a bear market, but a typical shakeout. Especially in the crypto space, Bitcoin's decline is roughly in line with the Nasdaq, indicating that market sentiment is still relatively healthy. More importantly, the inflow of funds into ETFs remains strong, showing that Wall Street is not fleeing but is instead looking for opportunities to enter the market.
Where are the short-term opportunities?
After this crash, there are two obvious opportunities to pounce on:
1. $DOGE (Dogecoin)
Doge has retraced from its peak of $0.48 to $0.34, a nearly 30% drop, and has already touched the 0.618 golden ratio support zone. This position is very critical, especially since Musk is set to lead new policies in January next year, and market expectations for Doge are very high. If you believe in market logic, this might be a good time to get in.
2. $ETH (Ethereum)
ETH currently has strong buying support in the $3420-$3520 range, and the Prague upgrade for Ethereum is still on the way for March next year. In the long run, these technological and ecological advancements will drive ETH upward continuously. Personally, I would choose to accumulate on dips, especially using low leverage for long positions, which provides stronger risk resistance.
Operational advice:
A crash is often a good opportunity to position, but remember to control risk. Especially for newcomers, never use high leverage just because your capital is small, as it can easily lead to being swept away by market movements.
Powell's hawkish comments have indeed put short-term pressure on the market, but in the long run, Bitcoin's value as a global asset will not be altered by a single speech. Especially with Trump's policies next year possibly pushing Bitcoin to become a national reserve asset, this is the long-term direction worth our attention!
Stay calm, position well in valuable coins, and let's welcome the next wave of explosions together!