After the Fed cut interest rates, Bitcoin soared from $59,000 to $63,700, and the market is hotly discussing whether the bull market will restart. I regard this as a short-term small bull market, and the increased liquidity of funds has driven the activity of altcoins.
Historically, the Fed's interest rate of more than 5% is often accompanied by the shadow of financial crisis, and the crisis often appears after the interest rate cut. From the Latin American debt crisis to the subprime mortgage crisis, this is true. At present, the Fed has raised interest rates to 5.25%-5.5%, indicating that the risk of financial crisis from 2024 to 2026 is high, especially the "big thunder" of the US debt of 57 trillion.
In the short term, the influx of funds may push Bitcoin to $75,000-77,000. However, under the hidden crisis, the market may pull back to the range of $38,000-48,000 to accumulate power for the next round of bull market.
In terms of strategy, it is recommended to seize the current rising trend, which is expected to last for 2-3 weeks, and reduce positions at high levels at the right time. Wait for the correction to the above range before making arrangements. The cryptocurrency world is ever-changing, with opportunities and risks coexisting. Investors need to stay sober and operate prudently to ride the wind and waves.
