At 2 a.m. last night, the Federal Reserve announced a 50 basis point rate cut, lowering the target range of the federal funds rate to 4.75% to 5%. This is the first rate cut by the Federal Reserve since 2020.
Brothers who know a little about financial knowledge know that unless there is a major economic crisis, the Federal Reserve's monetary policy rarely cuts interest rates by 50 basis points when starting a new rate cut cycle.
The Fed's rare and substantial rate cut may send a signal to the market-the possibility of an economic recession!
It is precisely because of this that although the 50-point rate cut is a big positive, the market performance of $BTC $ETH
is still a bit disappointing!
The US dollar index only fell slightly after the announcement of the news, and then quickly strengthened.
The US dollar did not fall with the rate cut, but strengthened instead, indicating that the US dollar has a strong hedging function due to systemic financial risks or geopolitical deterioration.
In addition, after the Federal Reserve announced a 50 basis point rate cut, the US stock market rose further, and the Nasdaq rose by nearly 1.2% at one point, but then it went through a thrilling roller coaster market, with the three major indexes rising and falling, and finally all closed slightly lower.
The currency circle also rose far below expectations. At present, BTC and ETH have reached the 4-hour pressure level of 62200 and 2400. There is a high probability that there will be a small correction in the future, but I still suggest that everyone is bearish and not short, and look for opportunities to buy low
Suggested position for big cake: around 60330 (based on real trading)
Suggested position for ether: around 2340 (based on real trading)
As for the news, focus on: the number of initial jobless claims tonight
