PANews reported on December 19 that Bitwise Chief Investment Officer Matt Hougan published an analysis stating that the Federal Reserve announced a 25 basis point rate cut and reduced its rate cut expectations for next year from four to two, leading to a significant pullback in risk assets. The S&P 500 fell by 3%, the Russell 2000 small-cap index dropped by 4.4%, and Bitcoin's price fell from approximately $106,000 to below $99,000, before slightly recovering. Meanwhile, about $600 million in crypto market leveraged long positions were liquidated, exacerbating market volatility.
Matt Hougan believes that this pullback is merely a temporary fluctuation and does not change the long-term bullish trend of the cryptocurrency market. He points out that the Federal Reserve's influence on the crypto market has weakened, while internal drivers in the crypto space are stronger, including a shift in Washington policy to support crypto, increased institutional investment and ETF inflows, government and corporate purchases of Bitcoin, and significant breakthroughs in blockchain technology.
Additionally, he mentioned that the 10-day exponential moving average of Bitcoin (approximately $102,000) remains above the 20-day exponential moving average (approximately $99,000), indicating that the market trend remains positive. Overall, he believes that the crypto market is in a multi-year bull market, and short-term rate adjustments will not change this trend.
