The Milan of the Federal Reserve has spoken again, repeating the same old tune, saying nothing.
He directly called the current policy of the Federal Reserve "over-tightening," which is like slapping his own people in the face. What is he afraid of? He's afraid that "deterioration in the labor market could happen very quickly." In other words, he's worried that if they don't inject liquidity soon, everyone will lose their jobs. This is equivalent to opening up the idea of liquidity injection while the old men on Wall Street are still being stubborn.
But, what about our current cryptocurrency market? Bitcoin is still struggling below 90,000; let alone hitting 120,000, it’s barely managing to stay stable. What does this indicate? Good news has arrived, but the money hasn’t; this is called a "liquidity trap." Everyone is shouting, "Liquidity has been injected, let’s go!" but their bodies are honest; no one dares to jump in and take the plunge.
My personal opinion is: Don't take every rumor as the truth. The "doves" and "hawks" within the Federal Reserve are still tearing at each other. On the same day, the president of the New York Fed sang a different tune, saying the policy is already prepared for next year. This indicates that interest rate cuts cannot happen that quickly or drastically. The market is merely trading on "expectations"; true liquidity inflow is still far away!
What impact does this have on the market now? In the short term, it’s definitely a good thing, giving everyone a reason for a rebound. But in the long term, those currently bottom-fishing need to be cautious. It’s like a person about to die of thirst sees a mirage; rushing over only to find there’s still no water to drink. Never let Milan's "dovish tone" cloud your judgment, thinking that a bull market is just around the corner. What the market lacks now is not slogans, but real capital.
So what should players do?
Don't get too excited and don't go all-in right away. This wave of news will at most stop the bleeding in the market and give it a boost; a real rebound will have to wait until those panic-selling "whales" take a break.
Hold onto your spot positions, don’t easily cut losses before dawn.
Take a small portion of funds to buy on dips in batches.
Stay away from high leverage; the market’s sentiment is too sensitive right now, and a mere rebound could wash you out.
What retail investors should do is "patiently wait for opportunities, and act decisively and accurately." Pay attention to the signals, come into the village to get daily shared real-time strategies and cutting loss guidelines!
