Federal Reserve cuts interest rates by 25 basis points, in line with expectations, Bitcoin $BTC shows weakness
🔍 Review and Analysis:
Trump factor and Bitcoin trend: Before Trump won, Bitcoin had already reached 73000; after the confirmation of his victory, Bitcoin soared to 76000.
Market confidence is high, anticipating the start of a bull market, however, a lack of funds has become a stumbling block on the path to rising prices.
The contract market's shorts were wiped out: From the low point of 66800 on the 5th to today's high of 76900, the shorts were completely defeated.
The market has turned bullish, but excessive optimism may require caution.
On-chain data reveals risks: When Bitcoin was at 76900, about 1 billion in shorts were liquidated; if it pulls back to 71000, bullish positions will face a liquidation risk of 3 billion.
Could institutions take the opportunity to accumulate?
History repeats itself: Deceptive spikes and enticing shorts: At the end of October, after Bitcoin reached a high ahead of schedule, it plummeted by 5000 points, coinciding with negative news to harvest bullish positions.
This time, the fluctuations in Trump's votes similarly attracted shorts, but in reality, institutions are positioning to collect contract chips.
A lack of funds, the market awaits reinforcements: rises require funding support, while declines can happen easily.
The market is short on funds, with off-market funds flowing to ETFs. For continued rises, a large amount of money printing support is still needed.
In summary, although Bitcoin briefly broke the previous high in the short term, factors such as a lack of funds and market sentiment fluctuations may affect its subsequent trend. Investors need to remain cautious and closely monitor market dynamics.
