Is the Fed not cutting interest rates? How will the crypto market cope with this wave?

The expectation of interest rate cuts has been directly halved, and the funding situation is about to change.

The probability of a rate cut in December dropped from 63% directly to 50%. What does this mean? Powell's hawkish remarks are equivalent to pouring a bucket of cold water on the market. Borrowing costs have gone up, and liquidity has naturally tightened. At this critical juncture, if your long positions account for more than half, you really need to consider reducing your positions. Don't wait for the market to teach you a lesson through liquidation.

The collapse of tech stocks drags down the entire market.

The Nasdaq fell more than 2% in a single day, and the AI sector's market value evaporated by $1 trillion. What's worse is that the correlation between Bitcoin and the crypto market has remained above 0.8, making it impossible for either to stand alone.

Practical advice? Keep a close eye on the key support levels of Nvidia and the Nasdaq 100. Once these levels are effectively broken, encryption assets are likely to follow suit with a drop. At this point, running fast is more important than trying to catch the bottom.

Leverage liquidation data is quite illustrative.

In the recent round of market volatility, the amount of leveraged liquidations reached 610 million dollars, with 87% being long positions. When the price plummeted to 100,800 dollars, it triggered a large-scale chain liquidation.

Looking at the capital flow: ETFs saw an inflow of 1.5 million this week, sounds good? But last week there was a net outflow of 1.2 billion. This stark contrast in data indicates that market sentiment is still fluctuating violently.

Spot holders can stay steady, but if you're trading contracts, make sure to set a stop loss. Personally, I suggest placing the stop loss around 98000; it's always wise to leave yourself an exit route. The market won't make exceptions just because of your beliefs.