According to yesterday's hot topic, the probability of a Fed interest rate cut in January does not exceed 95%, which roughly means that the US will not be cutting rates as frequently as in 2024.
Previously, every rate cut would lead to a significant surge. The higher circulation of US dollars and rising prices drive the global economy and the cryptocurrency market.
Why does a rate cut cause a surge, while no rate cut leads to a drop? After a rate cut, more US dollars will flow into the market, and when they flow into the market, other countries' currencies will depreciate. Personally, I believe that if 1 dollar could buy an ice cream before, after the rate cut, the depreciation of the dollar would mean that it would take 2 dollars to buy an ice cream, which would certainly lead to an increase in prices.
The rise in prices is related to non-farm employment. If the unemployment rate increases, more people will be unable to find jobs - if no one is working, no one is paying taxes - without tax revenue, the government has no money - if the government has no money, they reduce taxes - the reduction in tax revenue means that even if there are not many people working, tax revenue will still decrease. A reduction in interest rates indicates that the country is wealthier; refusing to lower interest rates suggests that the country has no money, so they can only reduce interest rates to stabilize the market. Moreover, the US dollar is pegged to USDT, what do you think?
The above is only a personal opinion and does not constitute any investment advice!
