This wave of correction was unpredictable; no one knew that despite the interest rate cut being a favorable signal, it quickly turned bearish due to old Powell's remarks. There’s no need to worry; we are in a bull market, and at this time, the Thirteen should step up to recharge everyone’s faith.

However, this correction has the following reasons, and I hope everyone keeps them in mind:

① The Fed's hawkish statements.

Through the dot plot and Powell's remarks, there is only a 50 basis point rate cut expectation for 2025. The Fed has clearly stated that it will lean towards fewer rate cuts to control inflation. If there are signs of inflation resurfacing, there may even be a possibility of no rate cuts.

Additionally, regarding Bitcoin reserves, the Fed has clearly stated that it undoubtedly holds Bitcoin.

This reason is the trigger for this correction.

② A healthy correction is needed after a market peak.

On the 17th, Bitcoin reached a historical high of 108,000, and the market began a 5% correction the next day, triggering panic in the market, creating a stampede effect that exacerbated the decline.

With the market dominated by bullish sentiment, a correction is needed to clear leverage.

Global capital markets have all fallen into passivity, especially the U.S. stock market, which has shown a downturn after continuous rises.

③ The dealer's layout.

In fact, a deep correction now has a positive effect on the market; it is very timely. This correction can release the market's bearish sentiment before Trump takes office.

The dealer needs to drive retail investors out of the market before pulling up again, and the only way to do that is to crash the market. So we see that yesterday, the ETF has turned from inflow to outflow.

Retail panic is the effect the dealer hopes to see. I hope everyone can hold their spot positions steady; there’s no need to worry; as long as the bull market is still here, we will all make money.

④ Stay away from charlatans.

Now there are a bunch of so-called experts predicting the market; some have gotten it right this time. You need to make your own judgment on what basis they are making their predictions. If we look purely from a technical perspective, luck plays a large part. At this time, do not get too enamored with technical analysis. You should make a comprehensive judgment based on market sentiment, fundamentals, news, and data.

I hope everyone maintains independent thinking, stays away from high-risk investments, and avoids charlatans.