Last night, the annual CPI rate was announced. The previous value was 2.5% and the expected value was 2.3%. The published data was 2.4%, which was lower than the previous value but higher than expected. This is a very embarrassing thing. It is good news, but it is higher than expected. It is bad news, but it is lower than the previous value.
Then Bitcoin ushered in a wave of downward pinning, briefly falling below 60,000 and then recovered.
This is incredible. Today, all kinds of bearish calls have come out, and some say that Bitcoin will fall below 50,000.
Combined with the Fed’s speech the day before yesterday, it is possible to stop cutting interest rates, and some people even believe that the bull market has already ended.
For the matter of interest rate cuts, once it starts, it will only be more or less basis points for each interest rate cut, but it will not stop. Only when it reaches a certain value will it stop cutting interest rates.
Interest rate cuts are good for the entire financial market in the long run, so its effectiveness will not be reflected all at once. There will be a process and it will slowly appear.
When news appears, it is necessary to distinguish whether it is something that has happened or not, whether it is a big event or a small event. This is very important for investment, because investment is for the future, not the past and the present.
Take CPI for example. The data released by CPI is the data of the past, not the future. How to trade only based on the current CPI data? Based on feelings? This is all very unreasonable, so you can't get results.
But you can analyze from historical data to see whether the overall situation has improved or deteriorated in the past year. From this point of view, the CPI data is obviously getting better.
Combined with the interest rate cut, the interest rate cut is beneficial to the entire financial market. No matter how many basis points it cuts, it will continue to fall, and it will not stop suddenly, let alone turn into an interest rate hike.
