PANews reported on December 19 that Bitwise Chief Investment Officer Matt Hougan published an analysis that the Federal Reserve announced a 25 basis point rate cut and reduced the expected rate cuts from four times to two times next year, triggering a sharp correction in risk assets. The S&P 500 fell 3%, the Russell 2000 small-cap index fell 4.4%, and the price of Bitcoin fell from about $106,000 to below $99,000, and then recovered slightly. At the same time, about $600 million of leveraged long positions in the crypto market were liquidated, exacerbating market volatility.
Matt Hougan believes that this pullback is only a short-term fluctuation and does not change the long-term bullish trend of the crypto market. He pointed out that the Fed's influence on the crypto market has weakened, and the driving force within the crypto field is stronger, including Washington's policy shift to support crypto, increased institutional investment and ETF fund inflows, government and corporate purchases of Bitcoin, and major breakthroughs in blockchain technology.
In addition, he mentioned that Bitcoin's 10-day exponential moving average (about $102,000) is still above its 20-day exponential moving average (about $99,000), an indicator that the market trend is still positive. Overall, he believes that the crypto market is in a multi-year bull market, and short-term interest rate adjustments will not change this trend.
