The interest rate cut cycle has begun. Although Alt and other altcoins have skyrocketed, it may be dangerous to buy spot and hold now.

Recently, many altcoins have been pulled up. One of them is based on Powell's statement at the press conference that the US economy has not declined. Second, there are many vc coins among the soaring altcoins, and the dealers may want to pull up and ship on the eve of the doomsday.

Why is it "doomsday"?

First, interest rate cuts use a cycle to save the economy.

As shown in the figure, taking the last interest rate cut cycle as an example, Bitcoin has been falling since the interest rate cut cycle in August 2019 until the end of the interest rate cut cycle in March 2020.

Secondly, every interest rate cut cycle in history, if the first one is a 50 basis point interest rate cut, is usually accompanied by a disaster.

For example, the technology bubble in 2001, the financial crisis in 2007, and the new crown epidemic in 2020. In addition, the current global situation is tense, not only is the war burning, but the virus is also spreading in some regions. If a disaster occurs, it will be a serious blow to the financial market.

In short, the phrase "the economy is not in recession" creates a temporary market boom, which is not suitable for building a position. For long-term investors, perhaps it is appropriate to wait until a time of extreme panic before investing.

The current long-short ratio of Bitcoin is unbalanced. If it rises like this to start a bull market, it is obviously lacking fuel.