Brothers, the Federal Reserve is stirring things up again! The latest meeting minutes have exploded—internally, there are three factions arguing, some calling for rate cuts, others insisting on rate hikes, and some lying flat and observing. This rare division has directly confused the market, with Bitcoin jumping around the $112,000 mark—could it be a signal for takeoff or a precursor to a crash? Today, I will explain it to you in the simplest terms!

The three factions of the Federal Reserve, full analysis of the impact on the crypto market.

Rate cut faction (doves): These people believe inflation is under control and are shouting, 'Hurry up and cut rates to inject liquidity!'

Impact on the crypto market: Great news! With more money, it will rush into Bitcoin, potentially continuing to hit new highs.

  1. Wait-and-see faction (fence-sitters): They think the current interest rates are fine and want to wait for more data.

    Impact on the crypto market: Short-term fluctuations, but the long-term trend is still upward—pullbacks are buying opportunities.

  2. Rate hike faction (hawks): A small group of diehards worried about inflation rebounding, even wanting to hike rates. Impact on the crypto market: Short-term bearish, if rate hike expectations rise, the market may take a hit.

Simple summary: The more divided the Federal Reserve, the more volatile the market. However, in the long term, rate cuts are the big trend, and the logic of the Bitcoin bull market remains unchanged!

How should we operate Bitcoin now? Keep a close eye on the key points.

  • Support level: $108,000 (if it drops to this level, you can buy in batches)

  • Resistance level: $115,000 (if broken, it could push towards $120,000+)

  • Short-term strategy: Hold your spot positions and don’t make rash moves; don’t play with high leverage in contracts—be careful not to get liquidated!

Can we still play with altcoins?

  • Ethereum: Follows Bitcoin, but Layer 2 and RWA (Real World Asset tokenization) are hot topics—hold on and don’t panic.

  • Altcoins: AI, Depin, MEME are rising in turns, but don’t chase high prices; it’s easy to get trapped!

  • Risk warning: Bitcoin is up 17%, but many altcoins are down 40%. Funds are all flocking to BTC, so don’t go all in on altcoins recklessly!

Three pillars of the bull market in 2025

  1. The Federal Reserve will cut rates sooner or later: Goldman Sachs predicts cuts may start in September. Historically, during rate cut cycles, Bitcoin has averaged a 300% rise!

  2. Bitcoin halving effect: Just halved in April, supply decreases; in the past, every time after halving, it surged (2013 +539%, 2021 +103%).

  3. Institutions buying crazily: MicroStrategy has hoarded 570,000 Bitcoins, and the Trump administration even wanted to create a 'national Bitcoin reserve'—big money is entering the market!

Operational suggestions (a must-read for beginners)

  • Spot players: Hold onto Bitcoin and Ethereum; don’t let short-term fluctuations shake you out.

  • Contract players: Don’t leverage more than 3 times, set your stop-loss, tonight’s CPI data may trigger severe volatility.

  • Bottom-fishing opportunity: If it drops to around $108,000, you can buy in batches.

Final reminder

The short-term disputes within the Federal Reserve will cause market fluctuations, but in the long run, the bull market of 2025 has just begun! Don’t be scared off by short-term volatility—hold onto core assets (BTC + ETH), ignore the noise, and you can enjoy the big gains!

I am Big H, focused on analyzing the crypto market. Follow me to avoid pitfalls and seize opportunities for wealth.