Influenced by the Federal Reserve's expectation adjustment for interest rate cuts on December 19, Bitcoin plummeted from a high of $104,829 to a low of $92,268 at 3 AM on the 19th, with a maximum decline of 12%.
However, with the release of the US November PCE data last night, Bitcoin experienced a slight rebound, trading at $96,688 at the time of writing, with the decline in the past 24 hours narrowing to 3.9%.
Looking back at the market, it has fallen for four consecutive days, with 90% of coins declining in the first two days, while strong coins like SUI, USUAL, ENA, DOGE, PEPE, etc. completed their correction in the last two days. After the differentiation of strength and weakness, the market's downward space is limited, and leading spot assets do not need to worry too much.
Market sentiment is a key indicator. Last night, many KOLs cut their losses, and several advised against buying the dip, resulting in missed rebound opportunities, which is truly not worth it. Attention should be paid to opportunities in strong coins, as weak coins have limited rebounds, while strong coins often rebound faster and higher even after corrections. Switching to strong coins during a downturn is a wise choice to position for potential future rebounds.
CZ's mysterious prediction from four years ago reappears, sparking heated discussions.
Despite the low sentiment in the crypto market, Twitter user @WhaleFUD found that Binance founder Zhao Changpeng (CZ) posted a tweet on December 17, 2020, which seemingly predicted Bitcoin's drop from $101,000 to $85,000. @WhaleFUD even tagged CZ, requesting the tweet to be deleted, but CZ did not respond or delete the original tweet.
Interestingly, CZ posted a similar tweet format again in the past 24 hours, suggesting that Bitcoin will continue to set historical highs: 'Bitcoin makes historical highs, once, again, and again...'
This response brings some comfort to investors in the current market slump. However, whether this prediction can come true and when Bitcoin will set new highs remains uncertain.
Analysts: The Federal Reserve's policy will not hinder the upward trend of Bitcoin.
Matt Hougan, Chief Information Officer at Bitwise, stated on Twitter that although the Federal Reserve's adjustment of next year's interest rate cut expectations triggered a market correction, it did not change Bitcoin's upward trend. He believes that the short-term declines in US stocks and Bitcoin are normal reactions, but the intrinsic momentum of cryptocurrencies has gradually detached from dependence on Federal Reserve policies.
Washington's policies shift to support cryptocurrency.
Institutional adoption rates and ETF fund flows continue to increase.
Governments and enterprises begin purchasing Bitcoin.
Significant breakthroughs in blockchain technology.
Hougan summarized that this is just a small episode in the journey of Bitcoin's rise, and the overall trend remains positive.
$BTC $ETH $SOL
