What impact does it have on cryptocurrency?
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🤔 Trump criticizes Powell, what does it have to do with the crypto world?
On the surface, it seems like a mutual attack between the two, but in reality, it is a game of policies and markets. Trump has always favored a low-interest-rate environment. Once he is in office, he may continue to pressure the Federal Reserve to 'loosen up', and liquidity easing has always been a booster for risk assets—naturally benefiting the crypto world.
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📉 A 25 basis point rate cut, can the crypto world benefit?
Yes, but the effect of this medicine is chronic, so don't expect to get rich overnight!
A rate cut means lower funding costs, and some hot money from traditional markets may spill over in search of higher returns, with cryptocurrency being a popular candidate. Especially since the Bitcoin ETF passed this year, institutional funds are slowly positioning themselves. If the Federal Reserve enters a rate-cutting cycle, the crypto world is likely to welcome new funds.
However, note: A rate cut is not a miracle cure! The ups and downs of the crypto world also depend on technical cycles, regulatory attitudes, and market sentiment... Just like after the rate cut in September, Trump didn't immediately attack, and the market actually stabilized—a sign that short-term sentiment is somewhat optimistic, but don’t rush in mindlessly.
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🔍 What’s next? Keep a close eye on these signals!
· The words of the Federal Reserve: If Powell's subsequent speeches hint at continued rate cuts, market sentiment may continue to heat up.
· The U.S. election: If Trump is elected, it may push for a more accommodative monetary policy, which would be a long-term positive for the crypto world.
· Black swan events: Geopolitical conflicts, banking crises, and other sudden risk events may trigger a surge of funds into cryptocurrency for hedging, but also beware of short-term volatility.
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🧠 Operational advice: Opportunities exist, but be rational about it!
· Short-term players: If market sentiment noticeably warms after a rate cut, you can take small positions to bet on a rebound, but make sure to set stop losses, don’t be greedy.
· Long-term holders: During the rate-cutting cycle, gradually accumulate core assets like Bitcoin and Ethereum at lower prices, and patiently wait for the cycle to explode.
· Newcomers beware: Don’t be led by Trump’s tweets; the real decisions should be based on data, policies, and actual capital flows.
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Final note:
The crypto world is never short of opportunities; what it lacks is patience and rationality.
The Federal Reserve's play is not over yet; let’s calmly watch, pay attention to the signals, and operate rationally to earn wisely!