🔥The Federal Reserve's "Christmas Combo" has arrived! Interest rate cuts + early balance sheet expansion, is the market celebrating or staying calm?

🎯Behind the hawkish interest rate cut: Huge divisions, inflation remains a concern

A 25 basis point rate cut was expected, but 3 out of 12 voting members opposed it, creating the highest internal division in five years. The dot plot is more "hawkish": only one rate cut is expected in 2026, with nearly half of the officials believing this cut shouldn’t have happened at all. Powell stated this is merely a "precautionary rate cut," as core inflation remains stuck at a high of 2.8%, making the path for rate cuts not easy.

💰Surprising package: Early balance sheet expansion, injecting $40 billion each month

The real surprise is here! The Federal Reserve announced the immediate launch of a bond-buying program, with the first round purchasing about $40 billion in short-term government bonds, essentially restarting balance sheet expansion ahead of schedule, injecting liquidity into the market as a "Christmas package."

📊Employment data "roller coaster": Warmth and fatigue coexist

In November, 64,000 new jobs exceeded expectations, but the unemployment rate rose to 4.6%. The October data was also revised down by 105,000 due to the government shutdown. The market still bets on two rate cuts in 2026, believing employment is only experiencing a "moderate cooling." Goldman Sachs warns: The real signals will be seen in January next year.

🚀Impact on the crypto market: Opportunities and caution under the double cannon

On one hand, there is a precautionary rate cut, and on the other, early balance sheet expansion injecting liquidity, which is a short-term positive for assets like BTC and ETH. However, sticky inflation + internal divisions within the Fed could also lead to increased market volatility. Historical data shows that the early stages of a loosening cycle often present an active window for crypto assets, but one must be wary of a "buy the rumor, sell the news" pullback.

💬What do you think?

Is the Christmas market really about to kick off? Will you take advantage of this wave of liquidity expectations to position yourself in the crypto market, or will you remain on the sidelines? Feel free to discuss your judgment in the comments!👇$ETH $XRP $SOL

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