Federal Reserve Chair Powell told reporters at a press conference: 'Through today's actions, we have lowered the policy rate by a full percentage point from its peak, and our policy stance has now significantly reduced its restrictiveness. Therefore, we can be more cautious when considering further adjustments to the policy rate.'
Nonetheless, Powell added that rates are still 'meaningfully' suppressing economic activity, and the Federal Reserve is 'on track to continue lowering rates.' But he stated that officials must see more progress on inflation before further rate cuts. He said: '(The addition of language regarding the magnitude and timing of rate adjustments in the statement) indicates that we are at or near a time to slow down rate cuts.'
Powell: The Federal Reserve has no intention of holding Bitcoin.
Currently, there is ongoing debate about whether the incoming Trump administration will establish Bitcoin reserves. Powell stated that the Federal Reserve has no intention of holding Bitcoin. In a press conference following the FOMC meeting, Powell said, 'We are not allowed to hold Bitcoin.' Regarding the legal issues surrounding holding Bitcoin, Powell stated, 'This is something for Congress to consider, but we have no intention of seeking to change the law.'
So how will the market develop next, and what are the initial signals for stopping the decline?
Since Powell's speech today, the market has been weaker than expected. Since breaking above 90,000 in this round, there have already been three quick sharp declines, and today's count is the fourth.
It can be said that the three previous sharp declines consumed a lot of buying power, so this time after the sharp decline, there hasn't been much buying power seen in the market, instead, there has been a gradual decline after a period of sideways movement, which effectively buried another wave of bottom-fishing funds.
In terms of Bitcoin, there are no significant changes in the fundamentals, and institutions continue to increase their holdings. It is expected to consolidate around 100,000, and in the long term, it should continue to rise. Ongoing declines are also without volume and can be seen as continuing to consolidate in this range; all increases must solidify before moving to the next step.
One can use the strategy of buying heavily during large declines, buying lightly during small declines, and not buying at all when there is no decline to gradually pick up low-priced chips.
The current state of the market is that Bitcoin and Ethereum, supported by spot ETFs and traditional large capital, have considerable buying power below, so they cannot drop much.
