On the 19th, the Federal Reserve announced a decision to cut interest rates by 50 basis points. That night, U.S. stocks rose and then fell, and Bitcoin was also affected. After the U.S. stock market closed, Bitcoin began to exert its strength and closed with a positive line. Due to Powell's speech after the interest rate decision, the market generally believed that this rate cut was a positive signal. On the evening of the 20th, the U.S. stock market opened higher and the trend was stable.
Observing the current market performance of Bitcoin, the previous decline led to divergence in various cycles. Coupled with the warming of the news, it is expected to maintain a steady upward trend in the short term, and the main pressure is at $64,000 and $67,000.
Next, let's talk about the situation of altcoins. Most altcoins have experienced a deep correction and are basically at the bottom of the weekly level. It seems that there is not much room for decline. Therefore, in this Bitcoin rebound, altcoins performed strongly, and many currencies have risen by more than ten points. This strong momentum is expected to continue in the next few days. In particular, the bitcoin ecosystem-related currencies and several meme currencies we mentioned earlier have performed well, especially CKB, which has risen by nearly 300% driven by the news of landing on South Korea's largest exchange UP, which is amazing! The market for altcoins still has room to rise, so just hold it. Japan will announce its latest interest rate decision on the 20th. The last interest rate hike in Japan caused a sharp drop in the market. This time, investment banks including Bank of America Merrill Lynch, Morgan Stanley, Goldman Sachs and 53 analysts surveyed by Bloomberg generally predict that the Bank of Japan will keep the interest rate unchanged at 0.25%. If so, the market should remain stable on the 20th. As long as there is no external black swan event, Bitcoin should be able to rise steadily.
In the long run, does this mean that a bull market is coming? I don't think so. A 50 basis point interest rate cut is a more radical measure, and the US economy may not be as optimistic as Powell said. Historically, a 50 basis point interest rate cut at the beginning often indicates that the economy may have a hard landing and a financial crisis may occur in the future. We must be vigilant about this. Although the specific time cannot be predicted, we need to remain vigilant. After all, even Buffett is holding a large amount of cash in case of an emergency. We expect the market may experience another sharp drop, and then with the help of the Federal Reserve's printing press, the bull market may really come!
