The Fed's 0.5% rate cut has triggered a drop in the US Dollar Index (DXY) by 12% and pushed gold to a record $2,600/oz. Here are three possible outcomes:
1. **Readjustment from Highs (DXY @ 105-106):** The dollar stabilizes around 100-102. Gold slightly retreats, crypto sees moderate gains. Steady economy, controlled inflation.
3. **Normal Reaction:** DXY stabilizes at 98-100. Gold and stocks hold steady, crypto gains moderately. Balanced market response, steady DeFi growth.
💡 **Investor Takeaway:** Crypto and DeFi offer a hedge against fiat instability. Bitcoin, stablecoins, and DeFi platforms could see continued momentum.