In the early hours of today, US stocks and the cryptocurrency market saw varying degrees of decline! Nearly 700 million dollars were liquidated.
A single statement from Powell caused the Nasdaq index to plummet by 3.61%, nearly the largest drop in recent years. Moreover, Powell's hawkish remarks don't stop there! He specifically criticized the cryptocurrency market, stating that the Federal Reserve cannot hold Bitcoin. This caused Bitcoin to drop by 5%, which is just terrible.
Many people believe that his speech has a high likelihood of being positive, but the result is exactly the opposite! Since no one can predict what he said, this is a sudden disaster; not only retail investors but even Wall Street can only stand and take the hit.
The main reason for this plunge is that Powell indicated there won't be many interest rate cuts next year, possibly only two cuts, leading to declines across various assets.
Powell's statement that the Federal Reserve does not hold Bitcoin does not affect Trump's Bitcoin strategic reserve because the strategic reserve is held by the government, not the Federal Reserve.
So on January 20, when Trump takes office, there is still a considerable probability that BTC Bitcoin can become a national reserve.
Although there was a significant drop in the market yesterday, let's take a look at the ETF, where funds are still seeing a large net inflow. What does this indicate? It indicates that Wall Street capital tycoons view this plunge as an opportunity to enter the market, rather than exit. From this, it can be concluded that it is very likely that negative news was initially released to create panic, prompting retail investors to cut losses, while the large players took the opportunity to buy at the bottom. So, my friends, if you hold physical assets, don't be afraid; just hold on patiently. I believe that once the consolidation ends, we will quickly see a rebound!
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