After experiencing this decline in the cryptocurrency market, I deeply realize that the gap in intelligence between people is like an insurmountable chasm.
Just yesterday, Powell simply said, 'The Federal Reserve will not hold Bitcoin,' and a large group of people began to analyze and interpret this wildly, even claiming with certainty that this must be the main reason for the decline. Seeing this situation, I couldn't help but laugh 🤭
First of all, we need to clarify one point: the Federal Reserve is essentially just a monetary management institution and does not have the authority to purchase reserve Bitcoin. This is strictly defined by law, after all, Bitcoin is not a legal currency.
Secondly, there are many people in this world who are not interested in Bitcoin. Are some people just searching for validation everywhere after being down for too long? Take gold, for instance; it has existed for many years, yet there are still many people who are unwilling to buy gold even now. Similarly, when everyone rushes into Bitcoin, the market loses a lot of its playability.
Finally, there are indeed some reasons for this decline. One of them is that the expectation for interest rate cuts in 2025 has decreased from 4 times to 2 times, but that is only one of the reasons and not the main one. In fact, it is more because both the US stock market and Bitcoin had previously risen too much. The market has its own rules, and when prices are too high, a correction is naturally required. Therefore, this decline is simply because it needed to happen; it's that simple!
As a seasoned cryptocurrency investor, I share my experiences and insights for free. Friends interested in the cryptocurrency world can click on my profile to see my homepage introduction and witness miraculous moments together.
