Bad news! The whole market collapsed, and there may be no interest rate cut in December! There is a change in the interest rate cut, and the chairman of the Federal Reserve, Powell, has spoken.
First, let's take a look at the situation of the US stock market last night. The three major US stock indexes all fell, with the Nasdaq down 0.64%, the S&P 500 down 0.59%, and the Dow down 0.47%.
Cryptocurrencies have also seen a certain degree of correction. As of press time, Bitcoin was at $88,075, down 2.43% in 24 hours, and Ethereum was at $3,064, down 4.56% in the past 24 hours. The popular MEME coin, PNUT, fell more than 24%, and DOGE fell 5.16%.
Why did this happen?
It turned out that the hawkish speech by the chairman of the Federal Reserve, Powell, last night put pressure on the US stock market. He said that the strong performance of the economy gave officials room to act prudently on the issue of interest rate cuts, so "there is no need to cut interest rates in a hurry."
After Powell's speech, the probability of the Fed maintaining the current interest rate unchanged in December is 41.3%, and the probability of a 25 basis point rate cut has dropped to 58.7%.
However, people familiar with Powell know that he is best at expectation management. Whenever the market unanimously agrees that interest rates should be cut, his speech will pour cold water, and whenever the market is pessimistic and feels that liquidity is tightening, he will release positive news.
Therefore, what we need to do is to think in reverse and operate in reverse. Whether it is the currency circle or the US stock market, the more the core assets fall, the more they are bought, such as BTC, MSTR, etc. The general trend has come, the interest rate cut is set in stone, and inflation cannot continue to be high.
What we need to do now is to continue to hoard coins patiently, without any distractions, the more bullish the market, the more noise there is.
