Brothers, I just came across a piece of explosive news that I must share with everyone! This news says that the Federal Reserve may do two big things on Wednesday: one is to cut interest rates by 25 basis points, and the other is to end the balance sheet reduction plan.
Simply put, the American central bank is about to start a “money-printing” mode, the market has more money, risk appetite increases, and funds are very likely to flood into our crypto market! Analysts have pointed out directly: this is a big benefit for risk assets.
Why is this news such a big deal for the crypto market?
In simple terms, when the Federal Reserve releases money, the amount of money in the world increases. Where does the money go? It certainly goes to places with high returns! The crypto market is like a “high-risk, high-return” casino; in the past during such times, Bitcoin and Ethereum often surged. For example, during the Federal Reserve's rate cut in 2019, Bitcoin soon skyrocketed by more than 20%; and during the 2020 pandemic, the crypto market went bullish directly. If this happens again, I estimate that this kind of market situation will likely reoccur — when money has nowhere to go, the crypto market becomes a “flood outlet”.
What should retail investors do? Don’t worry, Brother Liang has some tips for you.
First, don’t rush in blindly just because you see news! Market sentiment can easily get overheated, and if the Federal Reserve suddenly changes its mind, you’ll end up being the one stuck with the losses. It’s advisable to wait for tonight's results; if there is indeed a rate cut, then gradually allocate investments into mainstream coins like Bitcoin and Ethereum, which are more stable.
Secondly, learn to watch the wind: pay attention to the US dollar index and the movements of the US stock market. If the US stock market is performing well, the crypto market usually follows suit. Third, don’t bet your entire fortune! It’s fine to play with spare money; if you make money, it's luck, and if you lose, it won't hurt too much.
Personal opinion: This opportunity should not be underestimated, but you need to be smart!
I think the Federal Reserve's actions are not accidental; they are forced by economic pressures — inflation and employment issues, which are also troubling the Americans. So the money release might continue, which is a long-term benefit for the crypto market. But remember, news-driven speculation is fast; it rises sharply but can also drop quickly. We retail investors receive information slowly and are prone to pitfalls #美国政府停摆 #美联储降息预期 $BTC $ETH $BNB
