SoSoValue: Today's market risk sentiment VIX index has climbed to its highest point since early August (when the Bank of Japan raised interest rates); the market may be overreacting, and maintaining risk exposure is recommended.

CoinVoice recently learned that according to SoSoValue's macro sector, at the monetary policy meeting on December 18, the Federal Reserve will lower interest rates by 25 basis points as expected, adjusting the target range for the federal funds rate to 4.25%-4.50%. Regarding the pace of interest rate cuts for next year, the Federal Reserve has adjusted its expectations from the earlier forecast of "four rate cuts" to "two rate cuts" through the latest dot plot. Additionally, the Federal Reserve raised its expectations for future core PCE inflation and GDP growth, which is consistent with Powell's remarks, conveying a signal that is more "hawkish" than the market expected. Data shows that today's market risk sentiment VIX index has climbed to its highest point since early August (when the Bank of Japan raised interest rates).

SoSoValue analyst indicates that the FOMC has proposed an unexpectedly aggressive interest rate cut plan, combined with Powell's "hawkish" remarks, causing market sentiment to shift towards panic, with U.S. Treasuries even in an overreacted state. The U.S. stock market subsequently adjusted, while the dollar strengthened. Overall, all risk assets responded strongly to the FOMC's latest signals. Based on macro data, we believe that the fundamentals of the U.S. economy remain unchanged, the dollar remains strong, and consensus-driven assets like cryptocurrencies continue to be the destination for capital inflows. Each market correction driven by sentiment in market games presents a good entry point, and we recommend maintaining risk exposure at this time. [Original Link]