Federal Reserve cuts interest rates, why did $BTC drop sharply instead? Where are the opportunities for retail investors in altcoins? How will tonight's unemployment data affect the market?
First, regarding tonight's unemployment data, there's no need to pay attention to the news; the trend presented in the market indicates that after the news lands, the bullish momentum is expected, as for how high it will rise.
Whether the altcoin pullback has reached the bottom still requires further observation.
Now about last night's sharp market decline:
In fact, I have often mentioned a saying, do not be influenced by the news; the news will only temporarily reverse the existing trend or accelerate the existing trend, but it does not change the true direction of the market.
Around 21:30 last night, I had already mentioned in my previous article: The Federal Reserve's interest rate cut is essentially a done deal, but after the rate cut, the market may not necessarily welcome a turnaround.
I also mentioned: After the rate cut, in the crypto market, most altcoins might drop another 10-20% from their existing levels, and I would consider increasing my position.
Just a few hours later, this was confirmed again.
The reason is that the market had already deteriorated before the news was released, and a large number of trapped investors were hoping to break even after the interest rate cut.
However, due to the lack of liquidity, the incoming incremental funds were not sufficient to lift the market, leading to a situation where the good news turned into bad news.
As most people are slow to realize, positive news cannot help them break even, and the hopes of those trapped are dashed, leading to forced selling.
With good news landing, investors who bought based on the good news end up getting trapped, and the panic factor intensifies, resulting in a downward trend in the market.
So even though Powell mentioned last night that there would be more than four interest rate cuts in 2025, the market merely spiked a little higher after the news was released, then reversed and continued the downward trend.
Therefore, do not look at what the news says; focus on how the market is presenting itself.
My personal view is that the perspectives on both the A-shares and the crypto market remain unchanged; both are on the path to bullishness, merely undergoing a deep washout at the weekly level.
Although the current situation of altcoins is not optimistic, the main purpose is to make retail investors abandon altcoins.
When retail investors become desperate with altcoins, along with the good news of ETF packaging and listing, it will officially trigger a crazy market.
This viewpoint is my personal subjective opinion and is for reference only!
