Affected by the Federal Reserve's announcement on December 19 to reduce the number of expected interest rate cuts in 2025, Bitcoin plummeted from a high of $104,829 at 3 a.m. on the 19th to a low of $92,268, with a maximum drop of 12%.
However, with the release of the US November PCE data last night, Bitcoin rebounded slightly. As of press time, it was trading at $96,688, and the decline in the past 24 hours narrowed to 3.9%.
Looking back at the market, this round of decline lasted for 4 days. In the first two days, 90% of the currencies followed the decline. In the last two days, strong currencies such as SUI, USUAL, ENA, DOGE, PEPE, etc. also completed the decline. After the differentiation of strength and weakness, the market has limited room for decline, and the spot leader does not need to worry too much.
Market sentiment is a key indicator. Last night, many KOLs cut losses, and several people advised against bottom-fishing, resulting in missed rebound opportunities, which was truly not worth it. Focus on opportunities in strong coins; weak coins have limited rebounds, while strong coins often rebound faster and higher even after a drop. Switching to strong coins during a downturn is a wise choice, laying out potential opportunities for future rebounds.
CZ's mysterious prediction from four years ago makes a comeback, sparking heated discussions.
Despite the sluggish sentiment in the crypto market, Twitter user @WhaleFUD discovered that Binance founder Zhao Changpeng (CZ) had tweeted on December 17, 2020, seemingly predicting Bitcoin's drop from $101,000 to $85,000. @WhaleFUD even tagged CZ, asking him to delete the tweet, but CZ did not respond or delete the original post.
Interestingly, CZ tweeted in a similar format again in the past 24 hours, suggesting that Bitcoin will continue to refresh its historical highs: 'Bitcoin creates historical highs, once, once, and again...'
This response brings some comfort to investors amid the current market slump. However, whether this prediction can come true and when Bitcoin will reach new highs remains uncertain.
Analysts: The Federal Reserve's policy will not hinder the upward trend of Bitcoin.
Bitwise Chief Information Officer Matt Hougan stated on Twitter that even though the Federal Reserve's lowered interest rate expectations for next year prompted a market correction, it does not change the upward trend of Bitcoin. He believes that the short-term decline of U.S. stocks and Bitcoin is a normal reaction, but the intrinsic momentum of cryptocurrencies has gradually detached from dependence on Federal Reserve policies.
Washington's policy shifts to support cryptocurrencies.
Institutional adoption rates and ETF fund flows continue to increase.
Governments and enterprises begin purchasing Bitcoin.
Significant breakthroughs in blockchain technology.
Hougan concluded that this is just a minor episode in the upward journey of Bitcoin, and the overall trend remains positive.
That's it for today's article. Currently, we are in a bull market, with changes in the air, and we share passwords every day.
