Guigu Morning Report

Precise Market Analysis 12.18

Brothers, good morning. Some brothers asked why it rose yesterday and then fell back down.

In fact, yesterday's analysis concluded in advance:

The closer we get to the release of the CPI data and Japan's interest rate hike, the more the market panic will amplify,

possibly breaking below $85000.

Tonight at 9:30 the CPI will be released, and after tomorrow's announcement of Japan's interest rate hike.

The market is likely to improve a bit, but how much it improves in the short term is uncertain and depends on the CPI data.

If the CPI is lower than expected, it will be beneficial for interest rate cuts, and we could quickly return to $94000.

After more than 10 years of reckless money printing, the Federal Reserve has fallen into an inescapable death loop:

Cutting interest rates will trigger severe inflation, while maintaining high rates may lead to a deflationary collapse.

Previously we mentioned that Chuanzi needs to prepare for the mid-term elections in November next year,

so they will find ways to lower prices and lower interest rates, which is an inevitable trend.

In addition, the trading volume of BTC by ancient whales and institutions has approached 70%.

From a long-term perspective, this price of BTC is still appropriate; in a volatile market, buy on dips rather than on rises,

regularly investing and bottom-fishing every day is fine.

Today, the altcoins like Stable, MON, and Bera have all fallen sharply; the narrative for public chains can no longer be sustained,

competition is too fierce, with hundreds of public chains having not even 100 users,

there's no need for so many public chains in the world; ETH, BNB chain, and Solana are enough,

so most altcoins are trending towards zero.

It is recommended to focus on holding BTC, avoid panic selling at the bottom,

and keep some bullets ready to bottom-fish when a black swan event occurs.

The market-wide panic is the best time to enter.