This morning, Powell stated that the Federal Reserve has no intention of participating in any government plans to hoard a large amount of cryptocurrency. Coupled with the Federal Reserve's meeting lowering interest rate cut expectations for next year, cryptocurrency prices plummeted as a result.
Since breaking above 90,000, this round has already experienced three rapid declines, and today's drop can be seen as the fourth. It can be said that the previous three rapid declines consumed a lot of buying power, so this time after the sharp drop, there hasn't been much buying power visible in the market. Instead, there has been a gradual decline after a sideways movement, which essentially buried another wave of bottom-fishing funds. Therefore, it will be relatively difficult to regain strength in the short term. The overall market enthusiasm was too high recently. Unless something unexpected happens; the market this time, taking advantage of the knife handed over by Powell, should be completing the most brutal cleansing just before the peak of the altcoin bull market.
After the announcement of the Federal Reserve's interest rate decision at 3 AM on the 19th, Bitcoin began to enter a downward trend, plummeting from a high of $104,800 to a low of $100,303, with a drop of up to 4.3%. As of the time of writing, it is reported at $98,971, with a decline of 5.85% in the past 24 hours.
In the past 24 hours, liquidations totaled $702 million.
On the other hand, according to Coinglass data, in the past 24 hours, the total liquidation amount in the cryptocurrency market reached $702 million, with long positions liquidated at $608 million being the majority, and short positions liquidated at $93.57 million, affecting over 25,300 people.
A super collapse of 20,000 points is still on the way.
The complete collapse of altcoins feels very dangerous in the crypto circle. Today, the U.S. core index S&P 500 plummeted, experiencing its worst and most severe decline in 20 years. If it enters a descending channel, all gains in altcoins will be wiped out.
Important Reminder
Weird development, after all, there is no fundamental change in the trend, and the policy is still moving towards monetary easing, although it may be slower, and the true impact of the U.S. election has yet to erupt. I am very optimistic about the first month of the power transfer on January 20, 2025, and within that month, there will also be the Q4 2024 financial reports. The cumulative effect is definitely a time worth looking forward to.
Furthermore, before January 20, my personal view is that one can buy quality assets on dips, such as BTC and ETH below the psychological price. Everyone has different opinions on positions, and there is no definitive standard, but for me, I am not in a hurry to take action now. I still want to see if there will be opportunities after Christmas. Of course, if there is a continued decline, especially if BTC falls below (just hypothetically) $95,000, I will start to build a position.
