Affected by the Federal Reserve's expectation of a rate cut being reduced on December 19, Bitcoin plummeted from a high of $104,829 at 3 AM on the 19th, reaching a low of $92,268, with a maximum drop of 12%.
However, with the release of the US November PCE data last night, Bitcoin rebounded slightly, trading at $96,688 at the time of writing, with a near 24-hour decline narrowing to 3.9%.
Looking back at the market, this round has fallen for four consecutive days, with 90% of coins following the decline in the first two days, and in the last two days, strong coins like SUI, USUAL, ENA, DOGE, PEPE, etc., also completed their corrections. After the differentiation of strengths and weaknesses, the market's downside is limited, and leading spot coins do not need to worry too much.
Market sentiment is a key indicator. Last night, many KOLs took losses, and several people advised against bottom fishing, resulting in missed rebound opportunities, which is truly not worth it. Attention should be paid to opportunities in strong coins, as weak coins have limited rebounds, while strong coins often rebound faster and higher even after corrections. Switching to strong coins during a downturn is a wise choice, positioning for potential rebound opportunities in the future.
CZ's mysterious prediction from four years ago reappears, sparking heated discussions.
Despite the low sentiment in the crypto market, Twitter user @WhaleFUD discovered that Binance founder Zhao Changpeng (CZ) tweeted on December 17, 2020, seemingly predicting Bitcoin's drop from $101,000 to $85,000. @WhaleFUD even tagged CZ, asking him to delete the tweet, but CZ did not respond or delete the original tweet.
Interestingly, CZ tweeted again in a similar format in the past 24 hours, suggesting that Bitcoin will continue to refresh its historical highs: "Bitcoin creates historical highs, once, and again..."
This response brings some comfort to investors in the current market downturn. However, whether this prediction can come true, and when Bitcoin will reach a new high again, remains unknown.
Analysts: The Federal Reserve's policy will not hinder the upward trend of Bitcoin.
Matt Hougan, Chief Information Officer at Bitwise, stated on Twitter that despite the Federal Reserve lowering its rate cut expectations for next year, causing a market correction, this does not change the upward trend of Bitcoin. He believes that the short-term decline of U.S. stocks and Bitcoin is a normal reaction, but the intrinsic momentum of cryptocurrencies has gradually detached from dependence on Federal Reserve policies.
Washington's policy turns to support cryptocurrencies.
Institutional adoption rates and ETF fund inflows continue to rise.
Governments and corporations begin to purchase Bitcoin.
Significant breakthroughs in blockchain technology.
Hougan concluded that this is just a minor episode in Bitcoin's upward journey, and the overall trend remains positive.
That's all for today's article. Currently in a bull market, the winds are surging, and we have password sharing every day.