Today, Bitcoin plummeted, falling directly below the $100,000 mark. Bitcoin spot ETFs also ended their continuous inflows for more than 20 consecutive days and began to see outflows!
The daily line has already formed a top divergence. Next, there is a high probability that the 3-day line will begin to cross. The strongest in the next half month will also fluctuate sideways. It is very difficult to continue to rise sharply!
The direct reason for the sharp drop in Bitcoin is that Powell said a sentence; the Federal Reserve is not allowed to own Bitcoin, and has not sought to amend the law on holding Bitcoin!
In fact, it is easy to explain his statement. The Federal Reserve is a company. The biggest task of this company is to maintain the strong position of the US dollar. If Bitcoin threatens the strong position of the US dollar, or even legislates as legal tender like El Salvador, the Federal Reserve will definitely not allow it!
Powell also frankly stated that he does not like Bitcoin, and said that the Federal Reserve does not like Bitcoin, and does not like to use Bitcoin as a strategic reserve!
Although Congress can adjust the law to allow the Federal Reserve to support it, it does not want such a modification to occur.
This statement directly hit the market, and the altcoin also fell by more than 20%!
