The Fed’s interest rate cut meeting is at 2 a.m.! The cryptocurrency world, the stock market, and other central banks are probably all waiting for the Fed’s 2 a.m. meeting! !
The previous value was 5.5% and the forecast is a 25% rate cut to 5.25%! The exact rate will depend on the data released in the evening!
Let me first explain to newbies what the Federal Reserve is!
The Federal Reserve is the central bank of the United States, responsible for formulating monetary policy, regulating the banking system, and maintaining financial stability. (In simple terms, it manages all the money in the United States!)
What does a rate cut mean?
A Fed rate cut refers to the Fed's decision to lower its benchmark interest rate. The benchmark interest rate is usually the interest rate at which commercial banks lend to each other. A rate cut will make borrowing cheaper, thereby encouraging individuals and businesses to borrow and spend. This is often used to stimulate economic growth, especially during an economic slowdown or recession. Rate cuts can also affect the stock and foreign exchange markets, usually leading to an increase in investor demand for risky assets. (Rate cuts are good for the current economic situation in the long run!)
The Fed's interest rate cut will have many impacts, including:
Lower borrowing costs: Lower interest rates on loans to individuals and businesses, encouraging consumption and investment.
Economic growth stimulus: Lower interest rates are likely to boost spending and investment, thereby boosting economic growth.
Stock market reaction: Rate cuts typically boost stock markets because lower rates make financing cheaper for companies and investors may turn to stocks in search of higher returns.
Inflationary pressures: Lower interest rates may lead to increased demand, which in turn pushes prices higher and increases inflationary pressures.
Currency depreciation: Interest rate cuts may lead to a depreciation of the US dollar, affecting international trade and investment.
Lower savings returns: Low interest rates reduce the interest income on savings accounts, which may lead to lower returns for savers.
Reduced Debt Burden: Borrowers can enjoy lower repayment costs, helping to reduce their debt burden.
The most intuitive feeling we can feel is that USDT has fallen, and it has fallen a lot! It will fall again after the interest rate cut, so brothers have to work hard to make money and try to outperform the decline in the U price!
Next, let’s talk about the impact of the Fed’s interest rate cut on the cryptocurrency world in the long run!
Increased capital inflows: The low interest rate environment may prompt investors to seek higher returns and thus flow into the cryptocurrency market.
Bitcoin's safe-haven asset characteristics: Interest rate cuts may enhance Bitcoin's appeal as "digital gold", prompting more people to view it as a store of value.
Expectations of fiat currency depreciation: Interest rate cuts typically raise concerns about fiat currency depreciation, increasing demand for cryptocurrencies as a store of value.
Increased trading activity: Low borrowing costs may make investors more willing to participate in transactions, increasing market activity.
The impact of the Fed’s interest rate cut on the cryptocurrency world in the short term!
First of all, no one knows how much the interest rate will be reduced in the early morning meeting! 25% 50% or maintain the high interest rate of 5.5%! All of the above are possible! !
I have reminded you many times on Weibo before that there will be a big wave before the Fed cuts interest rates, and BTC has been shouting a big positive line at 52,000, 53,000, and 54,000. Hold on!!! Some of my spot friends followed Brother Chong to buy the bottom and got the result!
In the long run, interest rate cuts are beneficial, but in the short term, if the rate cut is too large, it may cause panic in the market. Many institutions and individuals will speculate whether the United States is at risk of economic recession or whether the economy is in trouble, triggering a series of chain reactions, that is, a stampede caused by the butterfly effect!
At this critical moment, you must keep calm. My suggestion is to collect the altcoins in your hands and set aside at least 40% of USDT to deal with emergencies! In case the Fed meeting does not meet everyone's expectations and there is a big fluctuation, we will not be so passive if we have U in our hands!
The BTC and altcoins that I had bought the bottom with before all called for reducing their positions before the Mid-Autumn Festival, and most of the recent swings made internally have also been profitable. Currently, most of the group members here are holding FDUSD to mine CATI. Although this does not make much money, it is stable!
Regardless of the outcome of this wave of meetings, it will cause changes in the stock market, and changes in the stock market will affect the cryptocurrency market! Overall, the probability of a callback is very high, so I remind everyone again to take risk measures! (It is good to rise, but you must not do FOM)
Because the recent thinking is to run, in fact, the rise and fall of our internal q/un has little impact! Short-term operations are not afraid of bulls and bears! When the currency market is not good, be a scumbag and win the world!
If the price drops, we will look for opportunities to buy at the bottom. This is how we bought at the bottom of BTC, ETH, and floki wif dogs before!
