Today's market is full of gains, and few currencies are seen falling. As the saying goes, "In the fragrance of rice flowers, we talk about a good harvest, and in the sound of frogs, we hear the sound of frogs", this shows the high market sentiment.
After four years of waiting, the Federal Reserve finally ushered in its first interest rate cut. This news had a positive impact on the crypto market, but the reaction of the financial market was somewhat divided. Although the news of the rate cut brought short-term shocks, the three major U.S. stock indexes fell across the board, erasing the gains since the Fed's interest rate decision. At the same time, spot gold also gave up its previous gains. However, the crypto market performed strongly, especially Bitcoin, which once broke through $62,500.
After the 50 basis point rate cut, Powell's speech calmed the market sentiment. He said that the US economy is still strong and there is no risk of recession. Looking ahead, the general direction of the market is still upward, but the differentiation between the strong and weak Altcoin will be more obvious. This puts higher demands on investors' ability to select coins. Investors are advised to pay attention to Altcoin with hype expectations, follow the flow of hot money, and seize investment opportunities. I hope that Altcoin can perform well for a period of time!
For those who think that a 50 basis point rate cut can immediately trigger a bull market, if this does not change your view of the market, then maybe cryptocurrency is not for you. In fact, the US economy has a profound impact on the global economy, but the market reaction takes time. The decision to cut interest rates is just the beginning, and the real implementation still needs to go through a complex process. Therefore, it is unlikely that the market will surge in the short term, and the flow of funds in the financial market is not only concentrated in the crypto market, so it takes time to observe the market diversion. Don't listen too much to those who predict that Bitcoin will reach 100,000 or even 200,000.
If you have funds on hand, it is recommended to hold on patiently and not blindly chase the rise. The large fluctuations in the market take time to digest, and the decisions of the bankers will also affect the market trend. Even with such a major positive news, the actual performance of the market still depends on the operations of the bankers and market sentiment.
Regarding the market expectations after the Fed’s rate cut, some people believe that Bitcoin will hit $65,000 in the short term, or even $70,000. But whether it can directly break through $70,000 still needs to observe the market sentiment around $65,000. If the market is too optimistic, it may take time to verify whether the bull market has really started. At the same time, it is not ruled out that sudden black swan events may trigger greater market fluctuations, which is also a common situation in the market.
It needs to be clarified that the Fed's interest rate cut does not mean the arrival of a bull market. The reality is that we still need more patience and observation. Before and after the interest rate cut, the price of Bitcoin may fluctuate violently, depending on market sentiment and trading volume. Since market price fluctuations are difficult to accurately predict, it is recommended to avoid high-risk contract transactions during this period, and holding spot may be more prudent. Even if the interest rate cut has been implemented, the speed of capital inflow into the crypto market will not increase immediately. Traditional financial markets such as the stock market, commodities and futures markets usually attract larger funds because they provide more stable returns. Whether the real bull market has arrived, it is necessary to continue to observe the long-term trend of the market, especially at the end of the year and next year.
Finally, there are still many things that are not written down, such as specific opportunities and specific decisions. These things are often not something that can be summarized in one article.
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