Why did the last bull market collapse? What is the key indicator of the bull-bear transition? The answer is the Fed's interest rate hike!

This is also the important reason why in this bull market, everyone has to confirm the Fed's interest rate cut before they dare to enter the market boldly!

Suppose the Fed announces an interest rate hike, don't hesitate, and sell the currency decisively, regardless of whether it is a loss or a profit at the time.

At that time, when the news of the interest rate hike came, the market did not fully understand it at first, and there were occasional rebounds. Many people were full of doubts, and then gradually got used to it. Those who held spot goods were eventually trapped directly on the top of the mountain. Many currencies in the last bull market have disappeared. Don't disbelieve it, there will be a time when the spot will return to zero.

This is crucial information! So, is the current market a bull market or a bear market? Is it halfway up the mountain, or has it reached the top of the mountain? This is the answer that everyone is eager to know.

I always feel that there are risks in making money in the currency circle, but risks and benefits go hand in hand. The bigger the wind and waves, the more expensive the fish! The key lies in how you balance it.

I still firmly believe that we are in a bull market, based on the Fed's interest rate cuts and non-farm data.

As for where we are in the bull market, here is a data for reference, that is, Bitcoin's computing power. At present, Bitcoin's computing power has dropped to the lowest level since December 2022, which is equivalent to the lowest level when FTX collapsed. Where is the turning point of the lowest point in the last bear market?

When FTX collapsed, the bear market hit the bottom directly. Today's computing power is almost the same as that time. What does this mean? You may wish to think deeply about it!

If you want to know specific opportunities and specific decisions, see my homepage. I am Lao Liu.