When the Fed starts a rate cut cycle, it indicates that a strong bull market storm is likely to sweep in! ! ! 👋👋👋👋👋👋

2025 may be the starting point of this storm. However, there is another voice in the market, which believes that the real bull market climax will appear before the first rate cut, because the early release of rate cut news is often accompanied by market overreaction and correction, and the historical performance of the US stock market is a clear proof.

However, the industry has different views on the prospects of the current bull market. Many bloggers are cautious. They believe that 2025 may only be the end of the bull market, and even assert that the bull market has quietly exited. But in the long run, in the next few years, the market may still continue this bull market momentum, or even enter a long-term prosperity stage, and the key to all this is still the evolution of rate cut expectations.

It is worth noting that although the expectation of rate cuts is regarded as a positive, it also hides the risk of market volatility. Looking back at history, the Federal Reserve started a rate cut cycle in July 2019, and after eight months of gradual reduction, it ended in March of the following year. Interestingly, it was at the end of the rate cut cycle, that is, after April 2020, that the cryptocurrency market ushered in an unprecedented bull market. This historical experience reminds us that it takes time to realize the benefits of rate cuts, and the real carnival of the market often lags behind policy adjustments.

Based on this, if 2025 really becomes the first year of rate cuts, and the rate cut process lasts for about a year like in 2019, then we have reason to believe that this bull market will be more intense. As a major positive, the effect of rate cuts needs to be released gradually, not all at once. Given that the current interest rate level is as high as 5.5%, there is broad room for rate cuts in the future, and it is possible to reduce interest rates from 5.5% to 2% or even lower. However, how the interest rate level will be adjusted in the end still needs to be flexibly responded to according to the economic situation, which is also a major suspense in the future market.

For novices who are just entering the currency circle, facing the volatility of the market, they should not blindly follow the trend. It is recommended to first learn the basic knowledge and establish a solid investment philosophy and risk awareness. Follow me, let us move forward steadily step by step in the journey of the currency circle.

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