In September, the Federal Reserve cut interest rates. Will the cryptocurrency market really see a surge?
My answer is: it will definitely rise, but it is still unknown whether it will rise slowly or surge.
I have also summarized the following three reasons:
First, given the recent favorable landing, the market has attracted short-term rises and then ended with a decline. This probability still exists; but this September rate cut is completely different from the past, and the script may change greatly.
Second, after the rate cut is implemented, bank funds will undoubtedly flow out. The first to take over this wave of traffic must be the financial market. In addition to the stock market, the cryptocurrency market will also be the biggest beneficiary; because the current cryptocurrency market has a very large influence in the world, with 560 million participants. Where there are people, there are benefits, and it is also the most suitable place for funds to flow.
Third, except for the US stock market, which has been breaking the previous high, other stock markets are at a relatively low level, which will attract the favor of capital, and many high-quality companies will receive huge financial support; especially the artificial intelligence industry
Wisdom comes from choice, success lies in direction! If you want to be smart, you must walk with the wise; if you want to be outstanding, you must be with the outstanding. Reading classics and making friends with talents are the most precious wealth in life.
1. When trading on the exchange, you must wait patiently, observe market trends, seize the opportunity to place orders, and avoid frequent operations.
2. Pursuing perfect buying and selling points is easy to be trapped by the market. Newbies should learn to wait patiently, follow trading plans, and avoid blind operations.
3. Investment is not gambling, and should be based on analysis rather than speculation. In the contract market, following market trends is the key. Stay stable, trade only when you are sure, and stop profits and losses in time. The goal is to make steady profits, without the need to pursue maximum profits, and accumulate small wins into big wins.
4. To survive in the contract market, the key is a high winning rate. To do this, you must learn to wait for opportunities, endure temptations, and stay stable, so that you can improve the accuracy of transactions.
5. In the contract market, experts can strictly stop losses and avoid getting into trouble due to misjudgment. They wait for the right trading opportunity instead of expecting the solution of wrong decision. At the same time, they dare to operate with heavy positions in certain opportunities, but the premise is that they are fully prepared and planned. Don't blindly pursue heavy positions unless you have sufficient foundation and understanding.
The market changes rapidly, and it is crucial to understand the latest developments. In trading, buying is the basis and selling is the key. Regardless of profit or loss, the goal is to minimize losses and maximize profits. Maintain logic and a good mentality to improve trading decisions and accuracy.
On August 26, TRON founder Justin Sun expressed his concern about the fate of Telegram founder Pavel Durov on social media this morning and proposed an initiative. Sun said that regardless of the judicial outcome, Telegram is vital to the freedom and privacy of communication of billions of people. He hopes that Durov can regain his freedom in a legal manner as soon as possible and ensure that user rights are protected in a compliant manner. Sun further suggested that the cryptocurrency industry should unite and organize a decentralized autonomous organization (DAO) called#FreePavelto help Telegram founder Pavel Durov gain freedom legally. He promised that if this DAO is created in a decentralized manner and receives sufficient community support, he will donate $1 million.
WOO X will be launched on Orderly Network (ORDER). The token recharge channel is now open, the withdrawal channel will be open at 18:00 on August 27, and the spot trading pair ORDER/USDT will be open at 18:00 today.
Whale briefly analyzes the key points, "What will happen after the interest rate cut" Every interest rate cut in history, especially the first interest rate cut, has brought about a relatively deep decline in the financial market.
When the third interest rate cut began, the financial market effect came out. The reason for this is very simple. In plain words, the flow of funds takes time, and the market also needs time.
In addition, the most important thing about the interest rate cut is that the US's most adept QE policy, simply put, is "flooding the market", which is the so-called quantitative easing policy!
Usually, the most familiar means we are most familiar with is to raise or lower interest rates, and another is to adjust the bank's reserve ratio. QE is a third more special method, which directly buys government bonds and investment-grade asset-backed bonds through market intervention. Through large-scale purchases, bond prices rise and bond yields fall, thereby forming a loose effect. In fact, quantitative easing in a popular sense means printing money. Let the Federal Reserve buy the bonds issued by the Ministry of Finance, and then the money will be derived. Of course, as a global reserve currency, the consequence of printing money is to export inflation to the world, and the whole world will pay for it.
This is why commodities have risen several times after the start of QE, because it represents a bigger bubble! There is more money in the market, but the commodities or products have not increased in essence, and the debt will also reach a new height.
The market has much fewer opportunities for certainty than you think. As a retail investor, you can't find them by looking at fundamentals or K technical analysis. Only a few, such as the black and white equation, are truly certain by using tools to build advantages. Or some arbitrage opportunities.
Don't mistakenly think that your prediction of the market is certain. If you are bullish, you go long, and if you are bearish, you go short. Think about the strategy, at least consider the most basic acceptable loss, stop profit, position size, and use spot or contract or option or loan tools.
As Livermore said: "The first step is to estimate the future market and potential of a certain stock; the second step is to determine at what price to enter the market. At other times, you should stay out of it and let the market gradually develop trends."
The timing of several interest rate cut cycles and the subsequent trend of the US stock market, the US stock market will have the risk of a sharp decline only when it enters a recession. This trend does not look like a recession this year. Is the hype of recession a bit pessimistic?
Stablecoin market value has grown for 11 consecutive months, breaking through $168 billion to hit a record high
DefiLlama data shows that the market value of stablecoins has grown for 11 consecutive months, hitting a record high of $168 billion (currently about $168.1 billion), exceeding the previous peak in March 2022 ($167 billion). The data does not include algorithmic stablecoins, whose value is maintained through algorithmic mechanisms rather than pegged to external assets such as fiat currencies or gold. Crypto analyst Patrick Scott said he believes this is a sign of "new funds flowing into the cryptocurrency field." “Stablecoins have reached new all-time highs,” he wrote in an August 26 X post. “Total stablecoin market cap, excluding algorithmic stablecoins, has now reached an all-time high, surpassing the previous high in early 2022.” When asked by another user if institutional investment was driving the rally, he did not speculate on the cause of the rise, but did point out that “retail trading has been going on for at least eight months.” According to a July report from CCData, stablecoin trading volume fell 8.35% last month due to a drop in trading activity on centralized exchanges. The report cited MiCA regulations, which raised concerns about the future of USDT in Europe, as one of the reasons for the drop in stablecoin trading activity on centralized exchanges in July. The trend has continued into August, with the market currently trading just over $46 billion, according to CoinMarketCap.
The reference period is 4H. Maintain yesterday's idea. Currently in the retracement stage, wait for a price to reach the untested support area below to confirm the rebound before entering the market.
Tips (two ways to enter the market after breaking through the box structure):
1. Break through and chase
2. Wait for the retracement and rebound after the breakthrough
I just ran a calculation with my calculator. Bitcoin BTC has formed the largest accumulation zone between 6-7.37, with a total of 4.15 million chips. What does this mean? Looking back one year later, this may be the most critical support level for this round of real bull market, a very solid starting point, and may also be the bottom of the next bear market.
The importance of anti-censorship A public chain or a powerful protocol claims to be decentralized and secure Then what is needed is to be anti-censorship and to fight against it technically, otherwise the so-called security is bullshit and will die sooner or later. And see if others want you to die So this uncertainty must be eliminated technically. At present, only the POW mechanism is a better way for public chains, and it is also an important help for BigBing to achieve the throne
In the last bear market, ETH had the highest certainty and the best ecosystem, so it was the most resistant to declines, but it lacked innovation and had average growth. SOL fell a lot and rose sharply.
In this new trend, ORDI performed the best. Everyone bet on ORDI, but the car was too heavy to pull, so it has the least decline and the least increase. SATS performed better.
So everything has two sides. It is impossible to have the highest certainty and the highest return.
Summary: The performance of those that everyone is optimistic about is generally not very good. The big dark horses are in places where no one cares. After the big dark horses become big white horses, the returns are greatly reduced and the liquidity is greatly improved!
Ethereum can no longer be judged in the same way as Bitcoin. As long as it does not make up for the rise, it is basically half-baked. The market fluctuations are getting smaller and smaller. Last week, the highest impact reached 2820. It followed the decline but not the rise. The daily K-line stood at 2350 on the 8th and stretched to above 2550. It has been sideways for half a month. Now the second-level jump has reached near the 2750 opening. Whether it can achieve a triple jump to 3000, it is likely to be sideways this week.
The daily K-line EMA trend indicator has just ended the downward network short position and began to shrink. The EMA15 pressure has become support and is guarded at 2700. The KDJ diffusion trend is blocked at 2820. The Bollinger Bands have begun to shrink. It is very difficult for the K-line to make a U-shaped transition. Therefore, the possibility of stepping back to 2550 this week cannot be ruled out. MACD has continued to increase its volume. From the overall trend, the bullish trend has not yet been completed. The idea is to step back more.
The short-term 4-hour K-line is in the rising flag stage. Now the top is in a semi-breakthrough state. In order to avoid missing the opportunity to get on the train, you can only get on the train with a stop loss. All indicators began to shrink. Only the top pressure of the Bollinger band opening was raised to 2840, and the middle rail support came to 2720. The top of the two-hour K-line diverged, the K-line pulled up, and the MACD spread downward. All indicators shrank to the extreme. The market will either consolidate to the end of the monthly line, or it will have to liquidate a wave. The idea is mainly low and long!
BTC was suppressed after two attempts to reach 65,000 this morning, and the daily line showed a signal of weakening rise. 64,600 is under great pressure. If the long position is higher than 20%, it is no longer possible to cover the position near 63,800. If it cannot reach 66,000 before Wednesday, it is necessary to guard against a correction below 6.3w at any time.
Short-term current suggestion: If you hold long positions with a cost of 58,800-60,666, you can now start to hedge with light positions at highs, and use 8-10% small positions to take short positions in batches at 64,600, 65,000, and 66,000. Because the top of the August monthly line is near 66,200, the monthly line has been on a downward trend in the past six months, and the closing line this month must be lower than the highest point in July and close in the negative, so the top of 6.6-6.8w in the short term may be the limit, and a large positive line is needed to pull it directly here. The more you go up in the last week, the more you take short positions. The focus of the rise needs to be seen in the two weeks before September 18.
ETH is under great pressure near 2792, and has not yet stabilized at 2775, so it is difficult to see 3000 for the time being. If you hold a long order with a cost of 2566, you can now hedge with a small position at 2760-2788, 2818-2850 in batches, and then take profit in the direction of 2736-2666.
Sol, like 8.8, encountered resistance and fell back at 162-163. If you hold a long order at 142.85, use 1/3 of the long position at 159.25-161, 163-166 to hedge with short orders.
Hedging grasp: When the long position has a large floating profit and the short-term breakthrough of a new high begins to appear weak, you can boldly try to try shorting with a light position. Once the short-term peak is determined, you can follow the trend to cover the short position and take profit on the remaining long positions at the same time to achieve long and short double gains.
In the last bear market, ETH had the highest certainty and the best ecosystem, so it was the most resistant to declines, but it lacked innovation and had average growth. SOL fell a lot and rose sharply.
ORDI performed best in this new trend, and everyone bet on it. However, it was too heavy to pull, so it has the least decline and the least increase. SATS performed better.
So everything has two sides. It is impossible to have the highest certainty and the highest return.
Summary: The performance of those that everyone is optimistic about is generally not very good. The big dark horses are in places where no one cares. After the big dark horses become big white horses, the returns are greatly reduced, and the liquidity is greatly improved!
The cycle of 2021 is good, with smooth rises and falls. This year, there have been at least two false breakthroughs in the 3-day line alone, that is, the decline is not smooth enough, and the wash is not sufficient, resulting in great resistance to the return of the bull market. Now it is the third breakthrough, and the best is a real breakthrough. If there is another false breakthrough, the chance of a bear market will increase.
Powell hinted at a cooling economy at the annual meeting of global central banks, and the signal of interest rate cuts was obvious. He pointed out that the upward risk of inflation has decreased, the labor market faces more challenges, and future policies will be determined based on data and economic prospects.
As the market volatility intensified today, although the general trend is bullish, the pressure from above is obvious. Short-term operation recommendations are mainly low-long, and seek progress in stability.
1. BTC weekend market, let's see how it performs today;
2. ETH is affected by the sale of the Ethereum Foundation and continues to follow BTC;
3. SOL is moving in a good direction with the recovery of memecoin;
4. BNB is quite strong, occupying the third place in market value, and it will pull up the market at the slightest disturbance;
5. After Durov was arrested, a group of celebrities bought $TON to support him;
ton_blockchain added the Resistance Dog logo to the X account avatar;
caused the redotoken REDO to rise;
6. The suspected aevoxyz team transferred about 3.18 million US dollars of AEVO to Bybit;
Do you still want to keep smashing the market after it has come to this?
7. Orbiter co-founder: The full-chain approach is crucial to the future of Ethereum;
8. MicroStrategy founder: In the four years since buying BTC, the company's stock performance has outperformed other S&P 500 indices;
9. BananaGunBot: Bots are still safe to use, and Banana Gun will be more than just a Telegram Bot;
10. A large number of "conspiracy groups" have issued coins on trondao, $BULL's market value exceeded 300m in a few hours, and the number of holders was less than 300;
11. This week, the FOMC voting committee spoke, and the extent of the Fed's interest rate cut in September still depends on data;
12. Aave founder: Aave's thinking model can become the backbone of any real-world credit;
13. WazirX co-founder: A complete plan for token solutions will be proposed next week;
14. jup_dao: The number of votes for the "Small Grant System" proposal exceeded 173 million, and the deadline will be three days later;
15. HuobiGlobal has been online Memecoin on sunpumpmeme, I won’t say what the result is, at least the process is very comfortable. Although I didn’t play it, SUN began to pull back, some big players started to ship on the chain, and TRX continued to rise;