Let me tell you what I think about this rate cut.
The rate cut was predicted to be 50-25 basis points before this time. Judging from the current situation, the probability is a 25 basis point rate cut.
Based on the announcement of CPI, the impact of this 25 basis point rate cut on the market is not very large, and it may even cause a small decline in the market due to the positive expectations of the rate cut. Many friends will say that the rate cut will increase liquidity and reduce borrowing costs, but we can't stick to the special period of 2020-2021!
Because the overall environment is different, according to my prediction, after this 25 basis point rate cut, the market will fall first and then rise! Then before the next rate cut is announced, the big cake will continue to hit the 70,000 US dollar mark!
Then we also have to pay attention to the interest rate hike of the yen and the exchange rate between China and the United States. If nothing unexpected happens, I personally am still optimistic about the subsequent market rise.
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