What's going on? The Federal Reserve's rate cut plan has changed, and the interest rate market on Wall Street has changed!

Is it possible to go all-in in the cryptocurrency market now? Which coins are worth buying?

Every previous interest rate cut was accompanied by a financial crisis. Will this time be spared? This decisive indicator actually gave an unexpected answer!

So what will happen to the cryptocurrency world in the future? Let’s follow Shuqin to find out.

First of all, I was shocked by the unexpected changes in the next interest rate cut by the Federal Reserve.

Originally, everyone thought that since the interest rate had been cut by 50 basis points in September, the next cut would be less. However, as you can see from the chart, the next cut will most likely be 50 basis points again. The probability has reached 45.7% and is still rising.

Because you can see below, the probability was only 24.4% last week, and 34.4% the day before, and today, the probability has continued to rise to 45.7%.

Therefore, many people may have underestimated the Fed’s determination to cut interest rates. If it cuts 50 basis points in a row, coupled with continued interest rate cuts in the future, this time the money supply will be really huge!

And because of this interest rate cut, the U.S. dollars in everyone's hands have depreciated. You can see that the U.S. dollar has fallen from 7.3 a few months ago to 6.8 now.

What does this mean? It means that if you still hold US dollars, your actual assets and purchasing power will shrink, so the interest rate cut will force everyone to exchange the US dollars or USDT in their hands for other assets, especially US stocks or cryptocurrencies that are more sensitive to interest rates.

So don’t take it lightly. In the future, trillions of cash will flow from banks into the cryptocurrency circle, because the reason is simple: whoever does not buy it will see their US dollars depreciate.

As smart money on Wall Street, they will definitely buy. Even because interest rates are lower and financing costs are reduced, people will borrow money and leverage to buy. This is why the Fed's interest rate cut will lead to a bull market.

Everyone still remembers the bull market in 2020. At that time, although cities were closed and the economy was at a standstill, the cryptocurrency market and U.S. stocks relied on the Federal Reserve's 150 basis point interest rate cut to rise from 4,000 to more than 60,000 in one breath.

As we have analyzed in this round of interest rate cut cycle, the Federal Reserve will cut interest rates to 3.25% in June next year, a cumulative cut of 175 basis points, which is even larger than the interest rate cut during the epidemic. Therefore, this bull market in the cryptocurrency circle will be no exception, and opportunities are always reserved for those with foresight.

Now someone asked, every time the Federal Reserve cuts interest rates, the S&P market will plummet and there will even be a financial crisis, so the cryptocurrency market, which is closely related to it, will also plummet.

Shuqin would say that this was indeed the case before, but the process was reversed. Previously, the Fed cut interest rates only when the economy had problems, not because the Fed cut interest rates that caused the economy to have problems.

Facts speak louder than words, please look at the picture.

The Federal Reserve had previously implemented large consecutive interest rate cuts in 1984, 1989 and 1995, but the S&P 500 did not encounter a financial crisis like the interest rate cuts in 2000. Instead, it continued to rise, with the increase even exceeding 50%.

Why do the results of their interest rate cuts turn out to be so different?

In fact, as long as you have a deep understanding of macroeconomics, this question is an easy one.

Because the three interest rate cuts in the 1990s, like this year's interest rate cut, were preventive cuts, aimed at preventing problems before they occur. However, the Internet bubble in 2000, the subprime mortgage crisis in 2007, and the epidemic in 2020 were all bail-out-style interest rate cuts, which were implemented only after something happened.

Now the US economy is strong, with GDP in the second quarter even reaching 3%, with no signs of recession at all.

The Federal Reserve cuts interest rates in advance when the economy is good in order to prevent a possible recession. By lowering interest rates before problems arise, the probability of a financial crisis will become smaller and the chance of a soft landing will increase dramatically.

Hey, after listening to Shuqin's analysis, do you have a new understanding of the current market situation? As for these, he doesn't understand them at all since he is not a professional.

And our operation is also very good. Although Bitcoin has been sideways recently, the BNB that Benqin let everyone enter successfully broke through the 600 mark early this morning, opening up a larger room for growth. However, in the short term, there may be some pullback after the new coin mining ends on the 26th.

We made our layout for Solana before the conference, when it was only around 130. Then we sold it on the 20th when it was around 150. Sure enough, it plummeted by 10% after all the positive news came out. Isn’t this logic very clear? Then we bought the bottom again at 142 yesterday, because it is now around 140, which is still 40%+ of the previous high of 200.

In addition, we also let everyone go all in on Ethereum at more than 2,200, because as I said at the beginning, it will continue to rise. We have repeated it several times. Currently, its biggest resistance is the neckline of 2,800.

So those who want to work with us can come and have a look. Benqin places orders in real time every day.

Okay, let’s continue.

The cryptocurrency market has indeed rebounded a lot recently, and many people have begun to be afraid of heights.

However, judging from the major indexes, the cryptocurrency market still has room for further growth.

Because the current market's greed and fear index is only 50, which is very neutral, far from greed or extreme greed above 80. So my current strategy is still to buy on dips and wait for take-off.

Don't underestimate this indicator. For example, on September 6, I saw that the price of the currency reached an extreme panic and everyone went all in. At that time, Bitcoin was 52,000 and Ethereum was 21,000. Many people were scared and did not dare to buy at the bottom. They thought it would go to 40,000 or even 30,000. Little did they know that was the best opportunity to get on board.

Because there is nothing else to cryptocurrency trading except that others are afraid of my greed, so I buy what others dare not buy. When others are greedy, I will gradually leave the market. But it is not time to do that yet, the index is just over 50.

Some people may think that Ethereum is not doing well because it has not performed well in the past year. But I tell you, its performance in the bull market will definitely surprise you. See the picture.

The picture shows the exchange rate of Ethereum to Bitcoin. Have you seen it in 2017 and 2021? As long as the bull market comes, Ethereum can double compared to Bitcoin in just two weeks, and it will rise very rapidly, doubling in just one or two weeks.

So don’t worry later, because you see that the market is only recovering slightly now and its increase is already twice that of Bitcoin. When the bull market starts, you will see it soaring to the sky!