Although Bitcoin is currently attacking the $60,000 mark, the Chinese cryptocurrency community is now full of information about the short-term plunge in U.S. stocks and Bitcoin that may be caused by interest rate cuts.

Most people believe that global capital will flee after the Federal Reserve cuts interest rates on September 18.

At that time, it will trigger a collapse of the U.S. stock market, and further cause a sharp drop in the crypto market. Bitcoin may have to fall to $45,000 before it can be effectively supported.

Judging from historical data and surface logic, it seems reasonable.

But there are many cases in which history did not go according to the script, because the rules will eventually be broken.

For example, the previous three times the price broke through the previous highs after the halving, but this time it broke the pattern of the previous three times and broke through the previous high of 69,000 before the halving.

So will this rate cut repeat the same trend as before?

Will the pattern be broken this time, the next time, or which time?

Vitalik doesn’t know, Satoshi doesn’t know, and I don’t know either.

But personally, I think that the role that global capital plays in the financial market is a dominant role.

This is a problem that all retail investors can see. Wouldn't capital be transferred in advance to find investment markets with higher returns in order to effectively respond to the depreciation of the US dollar?

The market that can currently satisfy the appetite of capitalists: the new, globalized encryption market, Bitcoin, is the next battleground that they highly favor.

This seems to coincide with the market trends in recent months, with the approval of Bitcoin and Ethereum ETFs.

The capitalists who can play global finance and control 80% of the world's wealth have always been playing big chess, and all actions are pre-positioned.

They are not like retail investors who rush in when the price goes up and get scared when the price goes down. They always cut their losses at the bottom. Therefore, they cannot use their own thinking to judge what the main players will do.

Well, it is expected that interest rates will be cut starting from September 18 this month. It is basically confirmed that there will be a rate cut, it will be either 25 or 50 basis points. The market expects a 25 basis point cut.

If the interest rate is cut by 50 basis points, it means that the Federal Reserve predicts that the economy is about to go into recession and therefore needs to cut interest rates more aggressively to stimulate the economy.

If such a reversal occurs, there will be some negative impact in the short term.

If the interest rate is cut by 25 basis points, which is in line with expectations, it may be a positive in the short term and it is not impossible for the index to surge to 70,000 again.

In the short term, the cryptocurrency market may be more sensitive than the U.S. stock market due to its greater risk. The cryptocurrency market often shows trends earlier than the U.S. stock market.

Therefore, in fact, the cryptocurrency circle is currently showing a wave of optimism, rebounding from 52,500 to around 59,000 now.

Next, as usual, the good news will be realized. Even if there is bad news, there may be a short-term downward trend after the announcement of the interest rate cut.

First of all, the probability of something going wrong when interest rates are initially cut is indeed quite high.

Secondly, at the beginning of the interest rate cut, the real economy and liquidity were still in an unfavorable state.

In addition, it is speculated that due to the interest rate cut entering a downward cycle, there may be leverage clearance. To put it bluntly, borrowers will repay the money and then borrow it out again after the interest rate drops. This will also cause a short-term outflow of funds.

Especially in the cryptocurrency circle, when a big bull market starts, it is easier for the main force (dog dealer) to find reasons to go sideways and vigorously wash the market to absorb funds.

Of course, we know that the short term cannot be predicted, and the long term does not need to be predicted. Betting on either side is a gamble. Whether it is a sharp rise or a sharp fall, it is what the brothers of short-term and contract need to pay attention to.

For those of us who hoard coins, we can just put up the order to cover the position in advance during the big fluctuation. We are happy if we buy more coins, and we are also happy if we can't buy more coins because the price of coins has increased. To make big money, we must have a big picture and a calm mind.

In the long run, after a period of interest rate cuts, liquidity is loose, and then BTC will exceed the previous high of 73,000. Soon, Ethereum will exceed the previous high of 4,800, which is actually an official announcement that the bull market has begun to take off.

End.#Atthe time of writing, the BTC price is 58,460 USD, and there is a surprise at the top of the homepage.