Bitcoin continued to fluctuate in a narrow range around $63,000 over the weekend. The market fluctuated violently when the Asian market opened, continuing to digest the dovish signal of the Federal Reserve's 50 basis point rate cut. After hitting $62,356 at 6 o'clock this morning (23), it quickly soared to $64,048, performing a double kill of longs and shorts.
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Then, after 8 o'clock in the morning, it fell to 62,500 yuan again and then quickly rose, leaving a long lower shadow. The fluctuations within three hours were quite violent. At the time of writing, Bitcoin returned to 63,631 US dollars, challenging the 64,000 US dollar mark.
From this, it can be seen that market liquidity is still weak before the opening of the U.S. stock market. Weak liquidity can easily cause large short-term fluctuations, commonly known as false breakthroughs.
The breakthrough that occurred at noon was most likely to be the clearing of new futures and options chips placed after last Friday's delivery. When liquidity is low, it is often the best time to play derivatives. At present, we still have to wait for the opening of the US stock market in the evening and wait for the emotional guidance.
Important Events! Market Performance and Outlook
After the Federal Reserve announced a 50BP rate cut, the interest rate dot chart released later showed that the median Federal Reserve interest rate expectation at the end of 2024 would be between 4.25% and 4.50%, which means that the next two interest rate meetings will reduce the interest rate by 50BP, and the rate cut exceeded market expectations.
Powell made it clear in his speech afterwards that the rate cut was not caused by the economic recession, and the US economy is still strong. The market also chose to believe that the rate cut was not caused by the economic recession but was a defensive proactive rate cut. This triggered good market expectations for the subsequent trend, and some investors gradually returned to the market. Ethereum continued to be weak this week, and funds continued to flow out and gradually entered other ecosystems, which made the Altcoin market rebound with the market and the rebound was stronger than the market.
However, it should be noted that this week, the market sentiment index recovered quickly and has risen to 87%, a significant increase from 65.5% last week. As the Federal Reserve started to cut interest rates this week, driving market sentiment, the prices of various tokens rebounded further, and the market sentiment turned from greed to extreme greed, there is a very high risk.
The market also rose due to the Fed's interest rate cut. After entering the interest rate cut cycle, asset prices will continue to rise as liquidity in the market increases, but the current market liquidity is still weak and it will take time to release sufficient liquidity to the market. So I still hold the view that after this week's rise, there will be a short-term correction and then maintain volatility to accumulate momentum.
What makes the market more optimistic at the moment is that after the Fed's rate cut, investors' expectations for the future have changed and they have begun to gradually increase their confidence in the future. The monthly line will close at the end of September. As the market releases sufficient liquidity, it is expected that the real main uptrend will start in October, and the autumn market will arrive at that time. Looking back at the unilateral upward trend in February in the spring, BTC was the first to rise, and then Ethereum followed suit and the cottage took over.
Recent major events worth noting
Tuesday (September 24) Super Return Asia 2024
Friday (September 27) U.S. August core PCE price index annual rate; U.S. September University of Michigan consumer confidence index final value
CZ was released from prison on Sunday (September 29)
Recommend potential Altcoin worth buying in the near future
» OM
Market value: $982 million
OM has been performing impressively lately, doubling in value over the past six months! Although it has pulled back slightly recently, the upward momentum remains strong.
If the resistance level of $1.34 is broken, OM could rally to $1.64, giving investors a potential gain of 30%.
As a project focused on decentralized finance (DeFi) solutions, OM is expected to follow Bitcoin’s bullish trend and is definitely an exciting Altcoin to keep an eye on!
» DODO
Market value: $108 million
Highlights:
1- Flexible liquidity: Active market maker algorithm reduces slippage, supports multi-asset trading, easy operation, clean interface, and multi-chain compatibility. It especially serves token issuance, enhances liquidity, and promotes long-tail asset trading.
2- Multi-chain one-click coin issuance: expand project participation, attract new projects, enrich asset types and trading pairs, increase user traffic, and broaden market boundaries.
3- Meme platform and one-click coin issuance: keep up with hot topics, attract enthusiasts and investors, and enhance community interaction; create a token channel for the BTCFi project, lower the threshold for Meme coin issuance, and promote market development. Autonomous mining increases user participation and creates income for Meme coin holders.
4- Pegged Pool: Helps BTCFi assets to be pegged to BTC prices, reduces volatility risks, stabilizes the prices of specific Meme coins, and promotes healthy development.
5- Advantages of low market value: high growth space, great return potential, flexible strategic adjustment, and easy launch of new products and services. Top institutions provide significant support: with rich resources and excellent reputation, they can enhance investor confidence and improve industry status. They can promote the establishment of cooperation, broaden business paths, and attract users and project parties to join.
» SAGA
Market value: $264 million
Saga may be an unknown coin that grows 10 times. It came out secretly. It is an L1 but no one is discussing it. In fact, the cosmos ecosystem has produced a lot of soaring coins, which are not described here one by one.
There is an unchanging principle that the coins that have been hyped will most likely not be hyped again. Like Tia, the new ones are hyped but the old ones are not. The coin will only rise steadily, and may not rise much even if there is no development. Tomorrow there will be a big fluctuation, and it will be an upward fluctuation. If you want to increase your holdings of some new coins, you can consider saga. There is nothing wrong with buying in batches!
Saga is a layer 1 network built on the Cosmos SDK with unlimited horizontal scalability potential. The project aims to simplify and enhance the DeFi and Web3 gaming industries by providing a more customizable and streamlined new application development process.
