Why does the market often have a good bottoming opportunity after the first rate cut?

Looking back at the first rate cut in 2019, similar to the current situation, both are preventive rate cuts. At that time, the US stock market showed a clear tug-of-war trend before and after the rate cut, and tested the 200-day exponential moving average as many as 5 times

Before the rate cut on the 18th, the market had already stepped back on the moving average 3 times, which indicates that after the rate cut, the market may continue to be in a state of uncertainty and entanglement.

The reason for comparing these two periods is that the market's concerns and emotions are very similar during these two periods:

- Bulls believe that the tightening policy has ended and the market will enter a more relaxed phase;

- Bears are worried about tail risks, such as whether inflation will return and whether the economy will enter a recession.

It can be foreseen that the market may continue to test the bottom in the next month. For the cryptocurrency market, this may mean that a period of repeated shocks and bottoming is coming. $BTC $ETH $BNB #币安上线NEIRO #美国大选如何影响加密产业？ #新币挖矿CATI #灰度将推出首个美国XRP信托 #FTX赎回Solana