The collapse of the U.S. stock market has led to the collapse of the currency circle! Bitcoin dived 80,007, and the Fed won't cut interest rates? Where do retail investors go from here?



Last night, U.S. stocks collectively hit the streets, with the Dow falling 0.8%, the S&P 500 falling 1.5%, and the Nasdaq, which is clustered with technology stocks, falling more than 2%. Even NVIDIA, which is usually as fierce as a tiger, rose 5% in the intraday and closed with a loss of 3%!
The currency circle also suffered, Bitcoin fell to $86,100 in the early morning, and Ethereum fell below 2,800 dollars. What's even more heart-wrenching is that Bitcoin always loves to fall at the opening of the U.S. stock market, and it was only repaired during the Asian session, indicating that large U.S. investors are secretly selling!

Brother Xing's point of view:

Don't be fooled by the "rate cut illusion": The probability of a Fed rate cut in December is now below 40%, because the job market is too strong, and the central bank is not in a hurry. With liquidity expectations cooling, high-risk assets naturally face significant pressure.

Weakened independence in the currency circle: ETFs have tightened the short-term tie between Bitcoin and U.S. stocks, but in the long run, the halving cycle and global capital flows are king.

Retail investors are easily caught in the middle: those who chase highs and sell lows may have recently faced losses in the crypto world after the US stock market.

What should retail investors do?

Positioning should not be stubborn: reduce heavy positions during rebounds, keep enough bullets, and decisively cut losses when breaking through key support.

Dollar-cost averaging investors picking up bargains: placing orders in batches to acquire assets, Bitcoin in the 83,000-85,000 range, and Ethereum in the 2,700-2,750 range can be gradually accumulated;

Keep your eyes on the Federal Reserve: Before the December interest rate meeting, any employment and inflation data may be the tipping point.

Every crash in the crypto world is a time for veterans to pick up chips and for newcomers to pay tuition! If you don't want to be cut, you must keep an eye on the US stock market and the Fed's movements—follow Xing Ge, join Xing Ge's village, as I will analyze market traps and layout strategies every day in the village, and I will also provide early warnings!
BTC1.41%
ETH2.72%
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