BTC plunge warns of risks, and the Fed's interest rate cut expectations in the election year may open a new chapter in the market
Although the trend of Bitcoin was in line with my expectations, I did not expect to encounter the superimposed impact of the potential economic recession signals in the United States, triggering a sudden and violent decline.
This scene not only shocked global markets such as the US stock market and Nikkei, but also revealed the keen sense of smell and early layout strategy of Wall Street capital. Considering the special background of this year as an election year, if the economic risks really emerge, the Federal Reserve may quickly take strong measures to cut interest rates to zero to stabilize market confidence.
This plunge may be the performance of the market releasing pressure in advance, and extreme market conditions like 312 in 2020 may be difficult to reproduce. It may mark the end of a long-term adjustment cycle, and the Fed's emergency interest rate cut will become the key to triggering the next round of super bull market. Just like in 2020, history may repeat itself.
Under the dual considerations of politics and economy in the election year, it has become a high probability event for the Federal Reserve to take interest rate cuts to boost the economy and stabilize people's hearts. Based on this, I predict that starting from September, the market is expected to usher in a strong rebound, which will last until around the November election, and may then experience a short adjustment, but the long-term upward trend will not change.
Be cautious when buying at the bottom! Considering that after the US stock market opens in the evening, there is still a risk of violent fluctuations in the market, including the possibility of circuit breakers, a 40,000 pie is not impossible. This is the most pessimistic forecast. Always be in awe of the market.
