Interpretation of cryptocurrency market on Dec 19 2022

The overall market fell over the weekend. The market once again fell back to the November oscillation range. Because the U.S. stocks fell in tandem, the probability is that the general environmental factors. Only some varieties that have decreased significantly abnormally may have some internal problems. The specific reason still needs to wait for the exact news to be released. But these varieties themselves do not belong to the market-recognized value coin category. The influence is limited.

After the positive CPI data, the market was waiting for the Fed's attitude. BKEX Institute has mentioned this in its annual summary article. Expectation management is not a positive, but just the cheapest Fed's regulatory tool. With inflation accelerating and the high probability of seeing a 25 basis point rate hike as soon as next February, the time is near for the Fed to stop raising rates. Expectation management doesn't want the market to celebrate too soon.

So, the general environment is not something to worry about.

In contrast, the continued increase in on-chain addresses is more of a concern. In particular, the increase in small talks implies the entry of ordinary investors, which should not happen in the last phase of a bear market. Just like the Fed's expectations management, the pessimism of the mouth can be false. It is only proper that money is always coming in. Of course, the increase in on-chain addresses could also be due to the recent problems with the exchanges causing the stock to start using their wallets to hold assets. This is the most optimistic scenario, except that it cannot be verified. All we can do is to guard our positions, similar to last weekend's decline may still occur, but the purpose is all about cheating chips.