“After the Federal Reserve massacre, is it the best bottom-fishing opportunity for altcoins? Santiment points out that these projects may rebound!”
Wednesday's market massacre caused the total cryptocurrency market cap to plummet from $3.8 trillion to below $3.6 trillion. Although the Federal Reserve lowered the benchmark interest rate by 25 basis points as expected, some of Powell's comments felt like a biting cold wind, severely impacting the entire crypto market.
He not only warned that the reduction in interest rates by the end of 2024 might be less than expected, but also clearly stated that the U.S. “does not allow ownership of Bitcoin,” despite Trump's plan to include Bitcoin on the U.S. balance sheet. These statements directly triggered a significant market drop, especially for Bitcoin, which fell from $105,000 on December 11 to below $99,000, nearly evaporating $10,000.
However, the largest declines were seen in altcoins. Altcoins such as XRP, DOGE, AVAX, PEPE, LTC, and LINK almost all encountered double-digit drops, causing panic among many investors. But interestingly, Santiment's analysis suggests that this market reaction may be somewhat excessive, and those altcoins that have dropped the most may actually present the best buying opportunities.
Santiment mentioned in a tweet, “If this truly is an overreaction in the market, then the projects that have fallen the most may be the potential stocks worth taking the biggest risks to buy!”
In the midst of market panic, who can seize the opportunity for a rebound? Follow the hunters and get ahead of the game amidst the changing tides!
