The Fed cuts interest rates by 50 basis points. How will the market react? As a senior participant in the cryptocurrency circle, what trends and opportunities can you capture from it?
Big news came from the Federal Reserve. The interest rate was cut by 50 basis points! This is the first interest rate cut since the wave of interest rate hikes in 2022. Counting the days, it has been four and a half years.
Why cut interest rates? To put it bluntly, the American economy has to take a breath. The previous continuous interest rate hikes were like playing with life, and the interest rate soared to 5% to 5.5%. As a result, global funds were sucked away, the economy was sluggish, and the country's own debts were piled up like a mountain, almost 36 trillion US dollars. If it doesn't cut a point, it will collapse!
As soon as the interest rate cut came out, the market was so lively. U.S. stocks and gold jumped for a while, but soon calmed down. At the close, U.S. stocks fell and gold also rose and fell. But our friends in the cryptocurrency circle are not ambiguous. BTC has directly reached 62,000 points, which is eye-catching.
Let's take a look at the doorway behind this. To put it bluntly, the interest rate cut means that money has become cheaper. There is more money in the market, and liquidity has come. This is definitely a good thing for the cryptocurrency circle. With more funds, there will naturally be more people speculating in cryptocurrencies, and prices will easily rise.
But then again, the Fed's interest rate cut this time does not mean that it will always be loose in the future. As they said, we still have to look at the data. Therefore, we can't be too optimistic and have to keep an eye on market dynamics.
Take a look at the weekly chart of BTC again. The bottom pattern is obvious, MACD has also pulled back in place, the red column is shortening, and the daily MACD is about to cross the zero axis. These indicators are telling us that BTC is likely to go up. But how high it can go depends on whether it can break through 65,000 points and how strong it will be after the breakthrough.
In short, the Fed's interest rate cut is good news for our cryptocurrency circle, but we must keep a clear head and not be overwhelmed by short-term fluctuations.
Opportunities and risks coexist. Seize opportunities, but also be careful to deal with possible challenges. After all, in the cryptocurrency circle, you have to keep up with your mentality and strategy!
Position management, real-time monitoring, increase victory, and make profits.
Still the same, pay attention, my strategy code will be shared with fans for free!
