After Bitcoin rebounded from a high of $98,000 to $102,000 yesterday, it started a new wave of decline, with the lowest price falling to $95,682 around 5 a.m. this morning. At the time of writing, it was reported at $97,278, down 3.85% in the past 24 hours.
$1 billion liquidated in the past 24 hours
On the other hand, according to Coinglass data, in the past 24 hours, the total amount of cryptocurrency liquidations reached US$1.003 billion, with long positions liquidating US$859 million, accounting for the majority, and short positions liquidating US$169 million. More than 300,000 people were liquidated.
One of the main reasons for the decline is speculated to be related to the US Federal Reserve's announcement of a 25 basis point interest rate cut yesterday (19th) as expected, but it also hinted that the pace of interest rate cuts will be slowed down in 2025, with only two rate cuts instead of the previously expected four. However, Matt Hougan, information director of Bitwise, said on Twitter that the current situation will not hinder the upward trend of Bitcoin.
Hougan pointed out that the Federal Reserve’s signals did have a negative impact on risky assets, and the decline of U.S. stocks and Bitcoin was inevitable, but he believed that the current pullback did not mean the end of cryptocurrencies, because the correlation between the Federal Reserve’s attitude and Bitcoin was no longer as close as before, and Bitcoin now had an inherent upward momentum.
Dogecoin trading volume drops to $415 million
Dogecoin (DOGE) trading volumes have fallen to their lowest level since November, indicating a sharp drop in market participation across both spot and derivatives exchanges.
In October, Dogecoin was priced at $0.10. By the first week of December, it had surged to $0.48, with several analysts saying the cryptocurrency could be worth even more. The price surge could be linked to the election of Donald Trump as U.S. president and the return of retail investors.
A few weeks after Trump’s election, Dogecoin trading volume climbed to $5.69 billion, reflecting a notable interest in cryptocurrency trading. However, as of this writing, data from Santiment shows that trading volume has fallen to $415.31 million.
According to the 4-hour chart, DOGE continues to trade below a descending triangle. A descending triangle is a bearish chart pattern marked by a downward sloping upper trendline and a flatter horizontal lower trendline.
This pattern usually means a continuation of the price decline as sellers keep pushing prices lower while buyers struggle to maintain the support of the horizontal trendline.
As the price of DOGE is trading below the lower support line, it suggests that the bulls might not be able to push the memecoin higher in the near term. Instead, the value of the cryptocurrency might drop below $0.3.
This drop made me reevaluate the whole process;
Back cold
I suddenly understood a logic:
For the Americans and capital, all they want is a BTC, a tool to make money. The so-called cryptocurrency ecosystem is worthless in their eyes. This is a concept made up by the cryptocurrency community itself. The cryptocurrency community cannot represent the blockchain. The cryptocurrency community is just a small manifestation of the blockchain.
After this, I will re-evaluate the cryptocurrency industry and adjust my entire strategy. I hope to take my fans who like me further in the future.
