📉 Market undercurrents behind rate cuts: Can a bull market come?

History shows that rate cuts are often accompanied by a bull market after a big drop, and there has only been one successful soft landing since the 1980s. On September 18, the Federal Reserve unexpectedly cut interest rates by 0.50%, the largest rate cut since 2008, marking a high degree of uncertainty in the economic outlook.

Currently, the US deficit has reached $1.5 trillion in the first 10 months of fiscal 2024, far exceeding the pre-epidemic level. Experts predict that there is a 50% chance that the United States will fall into a recession by June 2025, and the market generally expects a 50% chance of a 200 basis point rate cut in the next 8 months.

The Fed's interest rate cut is intended to try to stimulate the economy, especially against the backdrop of lower consumption and shrinking manufacturing. Although this policy may be good for the crypto market in the long run, short-term fluctuations are full of uncertainty, and excessive rate cuts may reflect deeper economic problems, causing investor concerns.

At present, the outlook for the labor market is worrying. If it can be effectively regulated, perhaps the dream of BTC sprinting to 100,000 is not far away! ⚡️💰 #加密市场反弹 #美联储宣布降息50个基点 #fida #GHST #slp $TIA $IQ $FIDA