The cryptocurrency market has seen another big correction! Over 100 million yuan was liquidated! Bitcoin dropped to $95,000, and the copycat market was slaughtered. Did the bull market come to an abrupt end? Will Trump's coming to power next year put an end to the market-cleaning trend?
The digital currency market is in mourning, stock markets are falling together, and an epic crash is imminent!
Bitcoin fell to $95,000, ETH fell below $3,500, SOL fell below the $200 mark, and altcoins suffered heavy losses: WIF plummeted 17.6% to $2.5; PEPE plummeted 16.3% to below $0.000019!
The stock market was equally vulnerable! The S&P 500 closed down 2.95% and the Nasdaq plunged 3.56%, setting a record for the longest losing streak in 50 years, and investor sentiment fell to a freezing point.
There are two main reasons for this sharp drop:
1. The Fed’s interest rate cut plan for next year is not strong enough, which has caused bad luck for US stocks and Bitcoin.
2. Fed Chairman Powell said that they will not buy Bitcoin and do not want to change the law. But I think these problems are temporary and the market will digest them after a while.
Now Bitcoin has fallen to around 97,000. Don’t panic, because this drop is mainly due to news, so it may fluctuate around 100,000 in the short term.
If it is suitable, you can try to buy some spot in batches, and keep buying around 80,000.
You can look at my previous article. I had already published an article the day before yesterday saying that there would be a sharp drop. This wave of decline did not have a waterfall and lasted for two days. In the past 24 hours, 243,300 traders were liquidated across the network, with a total liquidation amount of US$863.89 million.
Next, let's see if Trump will create an economic miracle immediately
Trump is about to take office, and the market is generally concerned about whether he can immediately promote economic recovery. There is still about a month before Trump's official inauguration, and the market generally expects that his inauguration may lead to rising inflation. In this context, despite the Fed's 25 basis point rate cut, Powell's hawkish remarks have significantly reduced the expectation of the Fed's rate cut in 2025 to two 25 basis point cuts, which is much lower than previous expectations.
In addition, the Fed postponed its original 2% inflation target to 2027, reflecting the Fed's uncertainty about the trend of inflation under Trump's administration.
As for the bull market of Bitcoin, it currently relies mainly on the support of funds from ETFs and listed companies such as MSTR. Despite the Fed's 25 basis point rate cut, the financial environment is still tightening. Since September, long-term bond yields and mortgage rates have continued to rise, while the US dollar has appreciated, which poses a macro risk to Bitcoin. The appreciation of the US dollar is usually associated with a contraction in the global money supply, a trend that is often unfavorable to Bitcoin and other crypto assets, and the Fed's net liquidity continues to decrease. If you are still confused and have no idea where to start in this market, comment 333 and get on board!
