Last night, the CPI announced that it was expected to cut interest rates by 25 basis points. Why did it fall sharply when it was clearly a rate cut? What is the only correct way to wait for a bull market?

First of all, after the announcement of a 25 basis point rate cut, there was indeed a short-term rise, which can show that the rate cut is good news.

But I also said when I predicted that if the data is released, there is a rate cut, and Bitcoin rises first, then you can't chase the rise and buy at a high position. You have to wait for the rise and then fall sharply to form a "heaven and earth needle" before buying.

After the good news is announced, there will definitely be countless people who see the news and buy on leverage. If you are a Bitcoin dealer or exchange, how can you maximize your profits? That must be to smash the market and let the long positions explode.

Secondly, although the rate cut is confirmed, the 25 basis point rate cut is lower than expected.

Many people didn't pay attention to the fact that rental inflation has stopped falling. Rental inflation accounts for a large proportion of US inflation, so the market has doubts about whether US inflation can fall as expected in the future, which also led to the reduction of the interest rate cut in September from 50 basis points to 25 basis points.

In early August, the US stock market plummeted, and the Federal Reserve even wanted to cut interest rates in advance to save the market. Therefore, it was generally believed that the interest rate would be cut in September at the latest. Therefore, the focus of this CPI is generally on how many basis points the interest rate will be cut. 25 basis points? Too little, the market will not buy it.

The only correct way is to hold the spot and wait for the positive effects to take effect.

You can observe the historical interest rate cuts of the Federal Reserve. Financial markets generally take a period of time to start rising, and it is a cyclical rise, not just a few hours or days.

Like the historical passage of Bitcoin ETF, such an important positive also waited for a month before the price of Bitcoin began to rise day by day.

The interest rate cut is good, but if you want to take a leveraged gamble, it is recommended that you understand the truth that the good news is bad news.