After experiencing this decline in the cryptocurrency market, I deeply realize that the gap in intelligence between people is like an insurmountable chasm.
Just yesterday, Powell only said, 'The Federal Reserve will not hold bitcoin,' and as a result, a large group of people began to analyze and interpret it madly, even confidently claiming that this must be the main reason for this decline. Seeing this situation, I couldn't help but laugh 🤭
First, we need to clarify one point: the Federal Reserve is essentially just a monetary management institution and does not have the authority to purchase reserve bitcoins. This is strictly regulated by law, after all, bitcoins are not legal tender.
Secondly, there are many people in this world who are indifferent to bitcoin. Are some people just looking for recognition after kneeling for too long? Take gold as an example; it has existed for so many years, yet there are still many people who are unwilling to buy gold. Similarly, when everyone rushes into bitcoin, the market loses a lot of its playability.
Finally, there are indeed some reasons for this decline. One of them is that the interest rate cut expectations for 2025 have dropped from 4 times to 2 times, but this is only one of the reasons and not the main one. In fact, it is more because both the US stock market Nasdaq and bitcoin had risen too much before. The market has its own rules; when prices are too high, adjustments are naturally needed. Therefore, this decline is merely due to the need to decline; it's that simple!
As a seasoned cryptocurrency investor, I share my experiences and insights for free. Friends interested in the cryptocurrency world can click on my profile to see my homepage introduction and witness miracle moments together.