Good morning, friends. What is the reason for the big drop?
What will the market trend be in the future?
Reasons for the big drop
(1) The interest rate cut in September led some funds to believe that the good news has been fully realized, so they took profits.
Early buyers of BlackRock ETF have recently been selling.
(2) Trump dismissed Federal Reserve board member Cook yesterday, causing a huge shock in the market.
This unprecedented move marks a significant escalation in his attacks on the Federal Reserve, raising concerns that this could threaten the Fed's independence, resulting in a sharp decline in the US stock market. Consequently, after this news was released yesterday, BTC also dropped somewhat.
There are also other disruptive actions, such as the potential renaming of the Department of Defense to the Department of War in the coming days, which has caused some funds in the market to panic and withdraw.
(3) The cryptocurrency WLFI issued by Trump's family has dropped sharply, triggering a decline in market sentiment.
This is the third coin issued by the Trump family,
which plummeted after being listed on exchanges, leading to a decline in market confidence and causing BTC to drop as well.
So, from a fundamental perspective, has BTC's fundamental situation changed?
A Filipino legislator proposed establishing a national strategic Bitcoin reserve: planning to purchase 2,000 BTC annually for 5 years.
More countries are joining strategic reserves, and many enterprises are still increasing their holdings.
China is expected to open BTC trading within 3 years.
It can be seen that BTC's fundamentals have not actually changed.
The US stablecoin policy is also being advanced, which has actually strengthened the fundamentals of the crypto space.
Regarding SOL, yesterday a newly created wallet withdrew 80,254 SOL from Binance, worth $16.28 million, and staked it.
Sharps Technology in the US plans to raise $400 million to establish the largest SOL reserve in the world.
All of these are positive for SOL.
In the past 24 hours, there has been a net outflow of 23,600 ETH from CEX.
Why is ETH dropping? Because it rose a lot and a decline is a normal phenomenon.
22 states in the US have sounded the alarm for recession, with nearly one-third of the GDP already 'fallen'.
It seems that not cutting interest rates is no longer an option.
From a technical perspective, BTC has dropped quite a bit, approaching the 120-day moving average.
The overall direction is still okay, but the market will need about a week to digest the recent bad news.
Brothers with bullets can buy BTC in batches at this position.
