Interest Rate Alarm Sounds! With GDP Soaring, Where Should Crypto Investors Put Their Money?

I'm Qihe. The latest US GDP data is explosive, with growth soaring to 4.3%! The direct consequence is that the market's expectation of a Fed rate cut in January has plummeted from 31% last weekend to a mere 13.3%.

What does this have to do with the crypto market? Absolutely! Interest rates are the dictator of global capital flows. With interest rates high, money is more inclined to lie in dollar assets earning interest, potentially tightening the flow into the crypto market. This is why the market has recently felt "short of cash," lacking upward momentum.

So what should we do? Don't panic, but don't fall asleep either.

Control your actions, observe more and act less. The key timeframes to watch are the Fed meetings at the end of January and mid-March next year. Especially March, where the probability of a rate cut seems significantly higher than in January. Before then, market sentiment is prone to fluctuations, and blindly chasing highs and lows can easily lead to losses.

Position size is your lifeline. If subsequent economic data remains strong and interest rate expectations don't decline, be prepared for continued market volatility and even pressure. Control your overall position size; don't go all-in at the drop of a hat. Keep some cash on hand for peace of mind.

Opportunities are waited for. If inflation and employment data cool down, reigniting expectations of interest rate cuts, that's when we should be on high alert. Focus on mainstream assets like Bitcoin and Ethereum, gradually accumulating positions on dips, but remember: gradually! Don't try to buy at the absolute bottom.

My personal view is: short-term pressure, but don't be pessimistic. Bull markets are never a straight line; the current volatility is precisely the time to filter out quality projects and accumulate capital. Pay close attention to the Fed's pronouncements and the actions of the US government, waiting for signals. Remember, survival is key to waiting for spring to arrive.

Remember, Qihe doesn't play games. You need practical, understandable, and profitable information; I want loyal followers who help you avoid pitfalls and seize profits. #加密市场观察