#CryptoMarketRebound

#CryptoMarketWatch
Despite FED Rate Cut, Bitcoin Fails to Rally
Even after the FED reduced interest rates, Bitcoin did not increase in value as expected. Investors usually see rate cuts as positive for risky assets like crypto, but mixed signals from the FED caused uncertainty. Bitcoin briefly jumped to $94,000 but quickly dropped again, showing that rate cuts alone are no guarantee of a crypto rally.

2. Powell’s Confusing Remarks Shake Crypto Market
FED Chairman Jerome Powell gave statements that were both positive and cautious. This mixed messaging confused investors about the future of rate cuts. Initially, Bitcoin reacted positively, but once the FED clarified that only limited cuts are expected, momentum faded. The market is now watching carefully for real actions rather than just words.

3. Bitcoin Momentum Weakens, Technical Data Shows Decline
According to Markus Thielen, Bitcoin is losing its momentum. Technical indicators show that the coin has slipped below its long-term upward channel that started in 2023. This suggests that without strong buying pressure, Bitcoin may struggle to recover quickly. Investors are cautious, waiting for signals that the market can sustain growth.

4. On-Chain Data Confirms Market Slowdown
December has recorded a net outflow from Bitcoin for the first time since August 2023. More Bitcoin is leaving wallets than entering, signaling reduced market activity. ETF inflows, an important indicator of institutional interest, have also slowed compared to last year. This shows that momentum is fading, and more capital is needed to support growth.

5. Year-End Likely to See Sideways Movement
Thielen expects Bitcoin to move sideways until the end-of-year holidays. Institutional investors typically close positions during this time, reducing market activity. Without new capital, prices may remain stable rather than rise sharply. Traders and investors are advised to watch carefully for shifts in inflows to predict future movements.

6. Long-Term Cycle Linked to US Elections, Not Halving
Thielen suggests that the long-term Bitcoin cycle may relate more to US midterm elections than the halving events. However, he emphasizes that the actual market direction will depend on real cash flows entering the market, not just theoretical cycles or predictions. This perspective challenges common beliefs in the crypto community.

7. Altcoins Face Selling Pressure from VC Unlocks
Altcoins are expected to experience selling pressure as venture capital funds unlock tokens worth around $59 billion annually. With institutional attention mainly on Bitcoin and Ethereum, altcoins lack strong catalysts for recovery. Investors may see short-term declines in altcoins due to large-scale sell-offs from these unlocked funds.

8. BNB Preferred Over Ethereum, Says Analyst
Thielen stated that he prefers BNB to Ethereum because of its stronger ecosystem and higher return potential. BNB offers more opportunities for growth and adoption across decentralized finance and other projects, making it more attractive than Ethereum in the current market environment where catalysts for Ethereum are limited.

9. Rate Cuts Alone Not Enough for Crypto Rally
The FED’s rate cut, normally a positive signal for crypto, did not lift Bitcoin. Mixed messages and slow institutional inflows show that other factors—like actual capital movement and technical support—are needed for a meaningful rally. Investors are reminded that relying solely on rate cuts can be misleading in a complex crypto market.

10. Market Direction Depends on Real Money Flows
Thielen emphasizes that actual investment inflows determine market trends, not narratives or predictions. Whether Bitcoin or altcoins rise or fall depends on tangible capital entering the ecosystem. Traders and investors are advised to watch ETF inflows, wallet movements, and institutional activity as key indicators of potential growth or decline.