Something happened, the big drop has begun.
In the past 24 hours, the entire network has seen liquidations of $1.023 billion, with over 300,000 people liquidated. Cherish life, stay away from contracts. This time it's done, after the retail investors finished getting liquidated, now it's time for the shorts to get liquidated. This weekend to next week, let's tentatively watch for a rebound; a reversal might still take some time.
A single statement from Powell caused the Nasdaq to flash crash by 3.61%, nearing its biggest drop in recent years. Moreover, Powell's hawkish remarks didn't stop there; he specifically targeted the crypto space, stating that the Federal Reserve cannot hold Bitcoin, causing Bitcoin to drop by 5%—it's simply too bad.
This is a hard market smash; no one could predict what he said, it's really a disaster out of nowhere. Not just retail investors, even Wall Street can only stand and take the hit.
The main reason for this crash is Powell's indication that there won't be many rate cuts next year, possibly just two, leading to a widespread decline in various assets.
