Why is the cryptocurrency market falling today? It is mainly attributed to investors' cautious attitude towards the Federal Reserve's monetary policy meeting. The focus of this meeting has shifted from merely the expectation of a 25 basis point rate cut to the presentation of the dot plot and the content of Powell's speech.
From the market's expectations, the Federal Reserve may only implement 2 to 4 rate cuts in 2025, which means that interest rates will remain at a higher level at that time. A higher interest rate environment often comes with an increased probability of black swan events, while also causing the market to be filled with concerns about the delayed implementation of easing policies, subsequently prompting investors to significantly enhance their risk awareness.
Additionally, whether the Bank of Japan will raise interest rates in December will also be revealed today. Although the probability of a rate hike is relatively low, given the current market sensitivity, it is normal for investors to choose appropriate hedging. It is worth noting that these two major events today are likely to have a subtle linkage effect with next week's Christmas, adding more uncertainty and volatility to the market. Recently, Dao Ge is quite optimistic about Musk's puppies, which have been gaining popularity and are said to be having significant developments soon. Brothers who like Musk can pay attention to this.