The 50 basis point rate cut exceeded market expectations, but the magnitude was not too large.
After all, the 50 basis point cut had been announced nearly a week in advance, and before the meeting, several lawmakers had directly looked at the first cut of 75 basis points, which was an unexpected positive.
In addition, Powell's speech after the interest rate meeting also dispelled market concerns about recession. This time, Powell did not hide anything and said frankly that the economy was very strong and he was very confident that inflation would fall back to 2%, which is why he chose to cut interest rates by 50 basis points. This speech is self-evidently encouraging to the market.
Judging from the dot plot, the Federal Reserve will continue to cut interest rates in the future, with a reduction of 100 and 75 basis points in 2025 and 2026 respectively. This means that the market will be in a cycle of interest rate cuts for the next two and a half years. This means that good days are coming for the currency market. How miserable we are in the interest rate hike cycle in 2022, how happy we will be in the interest rate cut cycle starting in 2024. I look forward to seeing 100,000 or 150,000 BTC in the next one or two years.
At this time, the unexpected 50 basis point interest rate cut is not entirely good for the market.
For example, from a political perspective, it is bad news:
Because loose monetary policy is not good for the Republican Party who has not yet taken office, a 50 basis point rate cut will definitely increase Harris's support rate, which will definitely be very disadvantageous for Trump's votes. The day before yesterday, Harris led Trump 50:48. After the rate cut last night, Harris's winning rate rose to 52%, and Trump's fell to 47%.
If he hadn't come to power, the crypto market sentiment would have gone to hell. Moreover, Trump used Bitcoin to buy a hamburger yesterday, causing all the burger concept coins in the market to take off. This operation directly pushed Trump to a major event in crypto history. In 2010, 10,000 Bitcoins were used to buy two pizzas, which made BTC valuable. This wave of Trump using Bitcoin to buy hamburgers will open up crypto payments to the historical stage. In short, Trump and crypto are strongly bound, and the market will definitely plummet if Harris comes to power.
Greed is running high, should we be wary of the risk of a Bitcoin pullback?
The first day after the Fed cut interest rates by 50 basis points
BTC breaks through $63,000 and moves sideways
Reviewing yesterday's market, after the Federal Reserve announced a 50 basis point rate cut, the bitcoin BTC went up and down. It was pulled up to above $62,000 in the Asian session in the morning and traded sideways. It began to rise around 17:00 in the afternoon and reached a high of 63,800 around 1:00 in the middle of the night, but was blocked and pulled back. It is currently consolidating around $63,000.
Recently, I have been emphasizing that the Bitcoin market should keep an eye on the position around 62,500, because this position happens to be the resistance position of the 120-day moving average. If it stands firmly, then the daily upward trend will be officially opened. At present, it has stood up. Today is Friday, and I hope there will be no more plunges.
As for the trend of BTC, as uncertainties are gradually eliminated, the inflow of funds into risky assets is almost certain, which is good for BTC in the long run. I am still firmly optimistic about the future of the crypto, and a new bull market is coming.
Yesterday, there were two hype routes in the industry meme, one was Trump's tracking hamburger route, and the other was Vitalik's various dog routes. In addition to these two routes, there was also a collective recovery of copycats.
In any case, the trend has arrived. What we need to do is to choose high-quality copycats to hold, and then actively participate in the innovative gameplay of each track.
The interest rate cut cycle has begun, and the next surge is clear, but it still needs time to brew. Don’t miss the opportunity. (I plan to ambush some low-market-cap coins with news in the near future to help you recover. The current market situation cannot be structured. I will take a 30% short-term gain and leave. The next password will be announced soon!!)
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