Did you buy the dip during this weekend's rebound?

As of 10 PM Beijing time on the evening of the 23rd, BTC has risen above $87,000, with a daily increase of 3.46%. It should be noted that just last Friday, the price had once fallen below $81,000—within just two days, the market sentiment took a 180-degree turn.

But the cost is not small. In the past 24 hours, nearly 120,000 people have been liquidated during this round of fluctuations. Since the peak of $126,000 at the beginning of the year, Bitcoin has retraced more than 30%. Such a drop in traditional financial markets is enough to trigger a circuit breaker.

The turning point comes from across the ocean.

Last Friday, New York Fed President Williams sent a significant signal: the current issues in the labor market are more challenging than inflation, and the Fed still has room to cut interest rates. As soon as he finished speaking, the data from the CME exploded— the probability of a rate cut in December soared from less than 40% to 70%, nearly doubling. Futures traders are already betting on a 25 basis point cut in January with a probability of 58%, and some are even betting on a 50 basis point cut with a probability of 22%.

As soon as expectations for interest rate cuts heat up, risk assets immediately come alive. After all, liquidity easing has always been a stimulant for the crypto market, especially now that the technical side is also looking for support.

However, if we look at it calmly, we still need to observe whether the $80,000 defense line can hold. The volatility of crypto assets is already several times that of traditional markets; this rebound may just be a recovery from an oversold situation, or it could be the starting point of a trend reversal, and no one can say for sure.

At this position, aggressive people are buying the dip, conservative people are watching, and smart people are controlling their positions. What about you?