🔥 Last night's market: a roller coaster overnight, 400,000 people liquidated
The Federal Reserve officially announced a 25 basis point rate cut on September 25. Initially thought it would be 'liquidity is a big benefit', but Bitcoin directly 'fell':
First dropped below 112,000 USD, over 400,000 people liquidated, losing 1.7 billion
Immediately pulled back to 113,000, institutions quietly increased their positions, retail investors are in despair
Is this wave a pit or an opportunity? Let's break it down in plain language today👇
🧐 Rate cuts ≠ free money, this time the liquidity isn't that 'sweet'
Don't imagine things based on the 2020 scenario:
At that time, it was really a massive liquidity injection, Bitcoin soared from 10,000 to 60,000
This time Powell directly struck: 'Risk management rate cuts, not massive liquidity, US stock valuations are too high'
The market turned instantly: the US dollar index fell then rose, US Treasury yields rebounded, short-term funds fled, and coin prices dropped 3% in half a day, with the liquidation amount soaring to $1.6 billion.
➡ Retail investors panic and cut losses, institutions take the opportunity to bottom fish.
💱 RMB depreciation adds fuel to the fire.
On the same day, the central parity rate of the RMB against the US dollar depreciated by 244 basis points, and the offshore rate fell below 7.14, hitting a two-month low.
Historical experience: when the RMB moves, Bitcoin trading volume heats up.
XBIT data shows: the number of Chinese users registered skyrocketed by 17%.
⚠️ Reminder: Don't blindly 'exchange currency to buy coins'!
Last year, someone did this, and as a result, small coins halved first, losing 60% of the principal.
🏦 Institutions hoard coins vs. retail investors speculate short: two different worlds.
Institutions: MicroStrategy holds 639,000 BTC, BlackRock increases its position in Bitcoin and Ethereum, not looking at the short term, but treating it directly as 'digital gold'.
Retail investors: before the rate cut, 'want to release water' and go all in long, after the rate cut, 'hawkish' and panic sell; on-chain data shows a net outflow of BTC from exchanges increased by 23%.
💡 One sentence summary: Institutions make money on trends, retail investors gamble on emotions, and emotions are the least reliable.
✅ Ordinary people should not be the ones left holding the bag: 3 practical suggestions
① Focus on key price levels:
If it stabilizes at 114,000, then lightly test the long position, looking at 116,000-117,000;
If it falls below 111,000, stay away; it could drop to 108,800.
② Only touch mainstream coins:
Bitcoin and Ethereum are what institutions are buying. Don't chase small coins; 90% of small coins were halved last year.
③ Look at technology, not just policy:
The Federal Reserve's rate cut is not a universal switch; what truly supports long-term prices is technological implementation: Ethereum Layer 2, Solana ecosystem, Bitcoin Lightning Network.
💬 Last sentence
“Don't think that a rate cut can make you rich overnight.”
Institutional entry ≠ just buy randomly and make money.
Instead of chasing news, it's better to first understand the underlying logic of Bitcoin.
Stabilizing your mindset, choosing the right track, and thinking long-term are the only ways for ordinary people to turn the tables!#美SEC和CFTC加密监管合作
$AWE