The massive tremors in the US stock market triggered a sharp decline in the crypto circle, so buckle up and fasten your seatbelt.
The Federal Reserve is set to lower interest rates in December, just as I have been reiterating almost daily for the past two months. The rate cut in December has been a predetermined script and will not change. Of course, when the rate cut actually happens, the Federal Reserve still introduces new twists.
The hawkish dot plot indicates that the rate cut in 2025 may only be 50 basis points, which is clearly lower than the previous predictions from investment banks of 75-100 basis points. As a result, the US stock market experienced a massive shock, leading to a significant tremor in the crypto circle, with Bitcoin leading the way in a violent pullback. So, are you feeling uneasy?
From the market's fear and greed index, it seems that the market was just slightly startled! Today's fear and greed index reached 75, indicating that the market is still greedy. For BTC, a few points of fluctuation are merely daily fluctuations.
I am not saying that there are no ongoing risks of decline in the crypto circle in the future; I am merely expressing that for daily levels, fluctuations of less than 10% for Bitcoin and altcoins are not considered significant. Just buckle up.
Of course, I will not choose to increase my position right now. Don't try to predict how the market will behave; just wait until it has released its emotions, and then choose your response accordingly.
This is an essential lesson in emotional control for those entering the crypto circle.