The interest rate decision at dawn resulted in a 25 basis point cut, but the market plummeted. Typically, after a rate cut, the market rises, but a single statement from Powell led to the current situation. The clearing line for long positions in contracts is densely concentrated in the range of $98,000 to $104,000, and Bitcoin's price directly dropped to $98,500.
After such a large drop, the explicit information in the market is that four interest rate cuts were originally expected in 2025, but now it's anticipated that there will only be two cuts next year. The Federal Reserve Chairman said: We are not allowed to hold Bitcoin and do not wish to change the law.
However, you must understand that the market's policy is not solely determined by them; they also need to look at the data. Statements can be made casually, but policies cannot be decided arbitrarily. Policies should be based on data, and how interest rates will be cut next year will also depend on various data.
He said this, Bitcoin is still that Bitcoin, the market is still that market, nothing has changed at all, but the market is in chaos, which is essentially due to the excessive rise. It needs to drop a bit to clear out the leverage.
I have said more than once that each significant drop in a bull market is a good opportunity to get involved:
Next, we are left with the illiquid Christmas and New Year, so be patient and wait for bottom fishing opportunities!
Regarding bottom fishing, it's still best to look for previously strong narratives that have not yet materialized.
I am optimistic about the market after Trump takes office from January to March next year. For stability, focus on ETH, BNB, SOL, etc. For those looking to take risks, consider ACT, PNUT, etc.
For stable builders, the meme sector can choose: DOGE, PEPE, WIF, FLOKI, etc.
For public chains, choose some well-established ones that already have good popularity, like APT, SOL, SUI.
For the AI sector, choose FET, including WLD, but I am more optimistic about FET, after all, there is cooperation with DWF as a market maker, making it difficult for the price to look too bad.
In the DeFi sector, the first consideration is still AAVE, including COMP. We already have zero cost for these. Friends who want to re-enter need to wait for lower levels. Additionally, MKR itself has no issues; it was just dragged down by Ethereum. If you have no stop-loss, you can hold normally, control your positions, and avoid contracts.
As for positions, it still depends on everyone's habits. Of course, Mr. Crab also suggests that everyone arrange it reasonably. If your allocation is insufficient, you might as well pick some parts from the above sectors to layout, as long as the fundamentals and projects are still operational, time will give you the answer and some wealth.
Opportunities and strategies for spot investment
MEME sector
WIF: The current price is around $2.2, suitable for buying in batches, with a short-term profit target of $4.
PEPE: The current price is around $0.000018. Buy in batches, with a short-term profit target of $0.000026.
