Source: WeChat Official Account: Guanguan Talks about Coins.

Early this morning, Powell stated that the Federal Reserve has no intention of participating in any plans for the government to amass large amounts of Cryptos. In addition, the Federal Reserve's meeting lowered the interest rate cut expectations for next year, which affected the significant drop in Cryptos.

Since peaking above 0.09 million, this round has already experienced three rapid declines, and today marks the fourth. It can be said that the previous three sharp drops consumed a large amount of Bid, so after this rapid decline, there hasn't been much Bid on the market, leading to a decline after a sideways movement, which effectively buried the funds that tried to bottom out once again. Therefore, in the short term, returning to a strong position will be quite difficult. Recently, the overall market enthusiasm was too high. Unless something unexpected happens; the market this time, under the knife handed by Powell, is likely to complete the most brutal cleansing before the rapid rise of altcoins.

After the US Federal Reserve's interest rate decision was announced at 3 AM on the 19th, Bitcoin began to enter a downtrend, plummeting from a high of $104,800 to a low of $100,303, with a short-term decline of up to 4.3%. As of the time of this report, it is quoted at $98,971, with a nearly 24-hour decline of 5.85%.

In the past 24 hours, liquidations totaled $0.702 billion.

On the other hand, according to Coinglass data, in the past 24 hours, the total liquidation amount in the cryptocurrency market reached $0.702 billion, with long positions liquidating at $0.608 billion being the major share, while short positions liquidated at $93.57 million, affecting over 25,300 individuals.

A super crash of 0.02 million points is still on the way.

The complete collapse of altcoins feels very dangerous in the crypto market. Today, the core Index S&P 500 in the USA has sharply declined, suffering its worst drop in 20 years. If it enters a downtrend, all altcoin gains will disappear.

Important reminder.

It's wise to remain cautious; after all, there are no fundamental changes in the trend, and policies are still moving towards monetary easing, albeit a bit slower. Moreover, the true impact of the USA elections has yet to unfold. There is a bullish outlook for the first month after the transfer of power on January 20, 2025, and within that month, the Earnings Reports for the fourth quarter of 2024 will also be released. This combination certainly makes it a time worth looking forward to.

Furthermore, before January 20, my personal view is that it is a good opportunity to buy quality Assets during dips, such as BTC and ETH below a psychologically bearable price. Everyone has different opinions regarding positioning, and there are no set standards. However, I am not eager to act immediately; I want to see if opportunities will arise after Christmas. Of course, if there is a continuous downturn, especially if BTC falls (just hypothetically) below $95,000, I will start to accumulate.