[Hotspot on September 19] - The Federal Reserve cuts interest rates by 50 basis points

At 2 a.m. today, the Federal Reserve started cutting interest rates and started the period of quantitative easing. This is the first rate cut since March 2020.

According to the Fed's dot plot forecast: the federal funds rate will be 4.4% at the end of 2024, and there will be a cumulative rate cut of 100 basis points this year. After the 50 basis point rate cut in September, there will be another 50 basis point rate cut.

As for the market reaction, it is also quite magical. After the interest rate decision was announced, the U.S. stock market went through a roller coaster market, and the three major indexes rose and fell, and finally all closed slightly lower. A typical two steps forward, one step back approach.

With the start of the interest rate cut cycle and the continued downward trend of risk-free interest rates, institutional investors may increase their layout in the crypto market and seek higher returns. However, it should be noted that although interest rate cuts usually have a positive impact on risky assets, a large interest rate cut has also triggered some market doubts about the health of the U.S. economy, which has an important impact on prices and may strengthen the market's expectations of a recession.

With the start of the interest rate cut, there will be fluctuations in the short term, but it will be beneficial to the cryptocurrency industry in the long run.