Yesterday, Bitcoin reached a new high, peaking at $107,793.
This rise in Bitcoin is mainly due to MicroStrategy's stocks entering the Nasdaq 100 index, and their CEO Michael Saylor has announced a significant increase in Bitcoin holdings.
MicroStrategy spent $1.5 billion yesterday to buy 15,350 BTC at an average price of $100,386.
This indicates that they believe $100,000 for Bitcoin is just the beginning, so they continue to buy in large amounts.
However, in the short term, this rise in Bitcoin is mainly driven by MicroStrategy, and this momentum may not last long.
If there are no new buying pressures and FOMO sentiment, the market will have a demand for a pullback in the short term.
Especially under the influence of the Fed's interest rate meeting and the Christmas market, investors may have a risk-averse sentiment, and market liquidity may decrease.
Currently, it seems that the Fed cutting rates by 25 basis points in December is almost a done deal, but it does not mean that the market will continue to rise after the rate cut.
Because the Fed's rate cut expectations for 2025 may make the market less optimistic about future trends.
The latest dot plot will also be released in December, and it is expected that the Fed may cut rates again 2 to 4 times in 2025.
In Powell's upcoming speech, he may reveal a more cautious attitude towards rate cuts.
Powell may start managing market expectations, preventing the market from becoming too optimistic and FOMO.
He may say that the Fed will conduct rate cuts in a limited manner in 2025, and there may not be a rate cut even in January 2025.
If Powell sends such a signal, it may offset the positive effect of a 25 basis point rate cut in December, and may even lead to further short-term bearishness.
Therefore, we need to pay close attention to Powell's speech after the interest rate meeting, as it will directly affect short-term market sentiment and price trends.
Additionally, it is worth noting that FTX will start distributing $16 billion in compensation to creditors within 60 days after the record date on January 3.
Currently, two exchanges have started to support FTX's claims, mainly settling in fiat and stablecoins.
The return of this capital to users is a good thing, and some funds may re-enter the market, increasing liquidity.
Over 10 billion in new funds have entered the crypto market; let's see if it can push Bitcoin to break $110,000.
Among altcoins, most projects are being drained by Bitcoin, with an average decline of around 10%.
However, cat has performed the most prominently, rising over 40% against the trend, mainly because it is about to be listed on Binance's spot market.
Binance has recently frequently listed VC coins and MEME coins, almost draining the liquidity of altcoins.
Binance first listed the AI big data public chain vana, but its performance is typical of VC coins, first spiking up, then slowly declining, and finally halving to sell off.
Yesterday, Binance announced the listing of meme coins cat and pengu.
cat is the second sub-coin of floki airdrop, pengu is the token of fat penguin NFT on the sol chain.
Currently, these are all projects on the Bsc chain, and market sentiment has not been stirred up.
However, we can pay attention to the market maker Wintermute.
This time cat's listing on Binance's spot market is inseparable from the assistance of market maker Wintermute.
cat was already the largest holding of Wintermute on the Bsc chain half a month ago.
Recently, Wintermute has been accumulating AI meme coins, indicating that this may become the next trend.
Currently, many high-quality projects on-chain have been sold off to create golden pits, and profits can be picked up at low prices.
