📢 Big news! The Fed's rate cut has caused market volatility, and the crypto market has ushered in new opportunities!
According to BlockBeats, on September 19, the Fed announced that it would lower the target range of the federal funds rate by 50 basis points, exceeding market expectations. This is the first rate cut by the Fed in 4 years! This rate cut marks the shift of monetary policy from a tightening cycle to an easing cycle. According to the dot plot, the Fed expects to cut interest rates by another 50 basis points this year.
As soon as the news came out, U.S. stocks immediately staged a roller coaster market. The three major indexes rose and fell, and finally all closed slightly lower. However, the Dow Jones and S&P 500 hit record highs during the session! Non-U.S. currencies generally rose, crude oil fell slightly, and gold fell after setting a new high. The most exciting thing is that the crypto market has also generally risen! As of press time, Bitcoin rose 3.26% and Ethereum also rose 3.1%.
With the start of the interest rate cut cycle and the continued decline in risk-free interest rates, institutional investors may increase their layout in the crypto market and seek higher returns. After all, interest rate cuts usually have a positive impact on risky assets. However, everyone should also pay attention. The substantial interest rate cut has also caused some markets to question the health of the US economy, which has an important impact on prices.
4E Exchange reminds everyone that the recent market volatility risk is relatively high, and it is very important to allocate assets reasonably. Whether it is the traditional market or the crypto market, investment needs to be cautious.
Friends, what do you think of the Fed's interest rate cut this time? Do you think the crypto market will usher in a new spring? Welcome to express your views in the comment area and discuss together! 💬
Does this interest rate cut have any impact on your investment strategy? Will you consider increasing your investment in cryptocurrencies? Or will you choose to wait and see? Come and share your views!