The price of Bitcoin (BTC) has experienced a significant plunge, briefly dropping below $99,000, hitting a low of $98,744, a decline of nearly 6%. The sudden drop has caused severe losses for investors. According to Coinglass, in the last 24 hours, nearly 300,000 people have been liquidated, with a total liquidation amount of $849 million. As of the time of writing, the price of Bitcoin has rebounded to $96,959.

The possibility of interest rate cuts has become an uncertain variable, and the future still relies on economic data for decisions. Market performance is a short-term negative, and such a significant impact will gradually be digested over time. In the short term, as long as Bitcoin holds the position of $9,800, the overall upward pattern has not been broken, treating it as a healthy correction in the short term is appropriate.

Regarding Ethereum, its price fluctuations have historically been dramatic. Although the current market correction seems weak, if it can hold the key position around $3,500, it is still considered a healthy adjustment in the short term. For investors, this position can be seen as a good buying point.

Views on altcoins

As for numerous altcoins, due to the frequent launch of new projects, funding choices become difficult, and new projects often lead to phenomena of dumping and harvesting, which is puzzling. However, every market correction presents a good opportunity for investors to replenish and increase their positions. Only those who have patience and can seize the right timing will stand out in the market. With Christmas approaching, after the holidays, the market will eventually return to normal, and we will once again welcome a familiar market environment.

If you want to buy deeper, then watch the situation of BTC testing $95,700 again while also observing the extent of the altcoins' decline. I have mentioned before that the position can be divided or taken all at once, depending on personal habits. Also, regarding bottom fishing, I have provided some thoughts in previous articles. Or if you are afraid and want to wait for stabilization before entering, that is fine too, since no one can buy at the lowest point.

Finally, let me share a few important updates:

1. Federal Reserve Chairman Powell stated that the Fed is not permitted to hold Bitcoin and has no plans to seek changes to relevant laws. This means that the Fed's attitude towards Bitcoin remains cautious, and it will not participate in the crypto market for now.

2. South Korean Deputy Prime Minister Choi announced that the South Korean government holds a positive attitude towards cryptocurrencies, deciding to postpone the implementation of crypto taxes and is formulating new regulatory policies, focusing on customer protection and the legal nature of cryptocurrencies. This is good news for the South Korean crypto market and may bring more policy support.

3. MicroStrategy co-founder Michael Saylor stated that the company will focus more on fixed income securities to raise funds for purchasing cryptocurrencies. This indicates that MicroStrategy remains confident in Bitcoin and continues to increase its holdings.

4. BlackRock pointed out that in the face of rising inflation, government bonds are no longer effective hedging tools, and investors should consider gold and Bitcoin as new diversified investment options. This viewpoint from BlackRock indicates that Bitcoin is gradually becoming a tool to combat inflation and market volatility as part of the asset mix.

Final thoughts

Please always remember that in the cryptocurrency market, only a few people can make money, while the vast majority lose money.

When a bull market arrives, one must understand one thing: who makes money in a bull market, and who provides the money? A big bull market is a major transfer of wealth, with a greater likelihood of transferring your limited money to others. Retail investors should be cautious of the bull market.