Pay attention to risks ⚠️Perhaps the downward pressure on the US economy is more serious than we thought. Pay more attention to adjusting strategies for long orders in the near future. There is a very, very high possibility that a global depression will be triggered. The Federal Reserve always maintains a neutral attitude during the election, but suddenly cuts interest rates by 50 basis points. Gold and US stocks soar together. We have to think that the market will intensify volatility. The performance of the Asian market in the currency circle is better than that of the US market, proving that US market institutions are not optimistic about the market prospects, or dare not invest funds.
The Federal Reserve recently announced a 50 basis point interest rate cut. Behind this large interest rate cut, it reflects the downward pressure on the US economy. With the election approaching, the Federal Reserve still chose to cut interest rates by 50 basis points despite the heavy pressure of neutrality, which is enough to illustrate the uncertainty and potential risks facing the current economy. The short-term reaction of the market may be positive. The US stock market has experienced a roller coaster of violent fluctuations after the interest rate cut, which is more like a "last gasp", reflecting that market sentiment is not stable.
For the cryptocurrency market, although the overall environment is not good, the currency circle may be affected in the short term, but in the long run, cryptocurrencies may benefit from global capital flows. The last cryptocurrency bull market was during the pandemic when the global economy stagnated and traditional institutions brought a large amount of funds into cryptocurrencies. As the epidemic recovers and the global economy returns to normal, the cryptocurrency market has ushered in black swans again and again. As the uncertainty of traditional markets increases, more funds may seek safe havens again and pour into the crypto asset market again.
