The Fed cut interest rates by 50bp, and the US stock market collapsed? Conspiracy?
At 2 am last night, Powell announced that the Fed's September interest rate decision would cut by 50 basis points! For the drastic 50bp cut, only one director voted against it because he hoped to only cut by 25bp this time. Fed Chairman Powell successfully convinced the majority of voters. With his back against the marble wall and his face to the sky, he was probably thinking in his heart: "Looking back on this day in the future, will I be the one who saved the collapse of the United States and turned the tide?"
Fortunately for the market, BTC did not immediately surge by 10%+, and BTC hit 62k in the early morning. I am happy to see this rising rhythm. Besides, what we want is not the real collapse of the United States, but a play of collapse "US stocks are dying". Please think carefully! Don't be silly and believe in the nonsense that "the US stock market will collapse as soon as the Fed cuts interest rates". This is purely confusing cause and effect and reversing black and white. It is obvious that the US stock market is dying, and the Fed has no choice but to cut interest rates and release money to save the market.
Moderate rate cuts are for face. Large rate cuts are for substance. If you want face, you may lose substance. If you can save face, you can also want substance. Does that mean you have both face and substance? Powell is not stupid. He knows very well that the lessons of the past are that the rate cuts were too late, too slow, or not strong enough. At the press conference after the interest rate meeting, Powell emphasized that the US economy is full of resilience and there is no risk of recession. This is a strategy that wants both face and substance: in action, a 50bp rate cut is for substance; verbally, reassuring the market that the economy will not decline and don't worry, so as to save face. Meijing compiled the performance of US stocks, the US dollar and 10-year US bonds in the past interest rate cut cycles.
It is obvious from the table that preventive interest rate cuts have successfully turned the tide, while relief-style interest rate cuts have repeatedly failed. Not all interest rate cuts are accompanied by market collapses. But almost all interest rate cuts will lead to a depreciation of the US dollar! In the long run, liquidity will continue to expand, and the US dollar is more likely to be forced to flow into the crypto market, and Bitcoin is expected to appreciate further in the long run!
Bitcoin skyrocketed to 62,000 after the U.S. stock market closed. Let the raging bull fly for a while!
The first interest rate cut by the United States was a "50 basis point" step. Gold and US stock indexes rose after the announcement, and then fell. BTC soared and broke through 62,000 after the US stock market closed. I will focus on this pressure point this week, because 62,000 US dollars is a weekly pressure point. Once the weekly closing stabilizes at this position, the weekly short trend will be reversed. I believe my friends will get some meat again this time!
Today's market analysis: From the K-line, the 1-hour level is an upward trend, but it has been obviously blocked and is about to go sideways or fall. The 4-hour, 12-hour and daily levels are upward trends. The intraday pressure is 63500 and the support is 60400. Today is Friday again. The volatility will be very large at night, especially before 9:30 pm. Regardless of whether it reaches the target range of 63500 or not, it is recommended to partially reduce positions and take defensive actions. You can enter the market again after stabilizing. There may be slight adjustments after the positive impact of the interest rate cut, but the probability of another big drop is not large. Don't worry too much. The big cycle expectations have never changed, and the bull market expectations are still there!
In this interest rate cut cycle, how to play in the following market situation?
Generally speaking, in a big market, the first things to be snapped up are high-quality targets. What are high-quality targets?
Public chains and leaders in various sectors: Today, the public chains are leading the market. Next, the leaders in bitcoin ecology, AI, games, depin, rwa, etc. will most likely usher in their own market conditions. You can screen targets and wait for opportunities to pull back and increase positions.
How to choose the market capitalization? Generally speaking, you should choose a medium-sized market capitalization, preferably 100-1 billion US dollars. The space is large enough, and there is a certain bottom line and value support. In particular, 100 million US dollars is the threshold for a local dog to become a dragon. It is not recommended to rush into various messy local dogs, memes, especially those that are not listed on the big exchanges. Choose the leaders of the track sector with higher certainty. In addition, you can choose from the newly listed stocks. Speculate on the new but not the old. The newly listed stocks are easy to be over-speculated. In addition, there are those expected to be listed on bn and upbit, especially those with contracts but no spot.
In addition, many projects have started to do things in the bull market, that is, to pay attention to those event-driven tickets, such as generation B economics, economic model changes, 2.0, 3.0 upgrades, cross-border cooperation, large financing, the establishment of large-cap funds, etc., you can rush in at the first time, and the success rate is often good.
As for other altcoins in the blockchain, whether it is the cooling of the world's speculative nature, or Bitcoin intercepting new leeks in ETFs, coupled with the lack of revolutionary nature of the altcoin market itself, it is almost impossible to see the situation of small volume, few gambling tables and many gamblers in the last round of bull market. The linkage between altcoins and Bitcoin remains, but this time from the perspective of more than 2 years, Bitcoin's long bull attribute compared to gold's low market value may not be less than the altcoins in the bull market. This time, Bitcoin is even more king.
In a bull market, cherish the chips in your hands. The market will not change overnight, and the amplitude is often not small. Remember to focus on spot and stay away from contracts! Try to exchange time for space.
4 cryptocurrencies are about to surge 100 times!
1. XLM
Stellar (XLM) is a blockchain network with a mission to make global remittances fast, cheap, and convenient. Launched in 2014, Stellar aims to bridge the gap between the traditional banking system and the digital economy. Its unique approach allows users to send, receive, and trade any form of money, including digital assets and traditional fiat currencies. This versatility makes Stellar a favorite for individual users and financial institutions looking to modernize cross-border transactions.
As more financial institutions and enterprises adopt Stellar technology, the network will see significant growth in the coming years. Its combination of versatility, efficiency, and low-cost transactions makes Stellar a key player in the next wave of blockchain applications.
2.BNB
Alchemy Pay recently announced support for the BNB ecosystem. The partnership enables Alchemy Pay’s On & Off-Ramp service to support a variety of tokens on the BNB chain, including its native token BNB as well as stablecoins such as USDC and USDT. This update was shared through Alchemy Pay’s official X account, marking an important milestone for the payment platform and the BNB chain.
This development enhances the user experience by simplifying transactions between fiat and cryptocurrencies, making the BNB chain more accessible. The integration of Alchemy Pay further expands the reach of the BNB ecosystem, a blockchain known for its fast, scalable, and cost-effective infrastructure. This makes the BNB chain a popular choice for developers building decentralized applications (DApps) and users engaging in decentralized finance (DeFi).
3.ABOUT
Sui is ready to capture the attention of the cryptocurrency world. It is a layer-one blockchain platform focused on global adoption. Sui uses an object-centric data model. This approach solves common blockchain problems. It adopts the Move programming language to ensure security. Sui prioritizes user experience to make blockchain interactions smoother.
Features like zkLogin and sponsored transactions simplify access. Its scalable development platform can attract more users. Sui aims to raise the bar for user experience on Web3. With blockchain enthusiasm rising this year, Sui may be a project worth keeping a close eye on.
4.SUN
Solana is a blockchain platform that focuses on making transactions faster and supporting decentralized applications. It is on par with other platforms like Ethereum and Cardano. SOL is Solana's token and plays a central role in its system. This token helps to enable transactions and support people in the network. Solana's approach is different and it does not use sharding.
Instead, its system can handle more tasks simultaneously. Why invest in SOL? It supports a growing network with the potential to host many popular applications. The benefits include faster transaction speeds and access to a variety of projects built on Solana, which is attractive to developers and investors alike.
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