SoSoValue: Today's market risk sentiment VIX index has risen to its highest point since early August (when the Bank of Japan raised interest rates). The market may be overreacting, and it is recommended to maintain risk exposure.

CoinVoice has recently learned that according to SoSoValue's macro sector analysis, at the interest rate meeting on December 18, the Federal Reserve reduced interest rates by 25 basis points as expected, lowering the target range for the federal funds rate to 4.25%-4.50%. For next year's rate cut pace, the Federal Reserve adjusted its expectations from 'four rate cuts' to 'two' through the latest dot plot. Additionally, the Federal Reserve raised its expectations for future core PCE inflation and GDP growth, which aligns with Powell's remarks, all conveying a more 'hawkish' signal than the market expected. Data shows that today's market risk sentiment VIX index has risen to its highest point since early August (when the Bank of Japan raised interest rates).

SoSoValue analyst indicates that the FOMC proposed an unexpectedly aggressive interest rate cut plan, coupled with Powell's 'hawkish' remarks, which led to a shift in market sentiment towards panic. U.S. Treasuries are even in a state of excessive reaction, the U.S. stock market has consequently adjusted, and the dollar has strengthened significantly. Overall, all risk assets have reacted strongly to the latest signals from the FOMC. Based on macro data assessment, we believe that the fundamentals of the U.S. economy remain unchanged, the dollar remains strong, and strongly consensus-driven assets like cryptocurrencies continue to attract capital inflows. Each market correction driven by sentiment in the market competition presents a good entry point, and we recommend maintaining risk exposure at this time. [Original link]