Christmas rate cut is coming? 71% probability to ignite the market! $BTC /$ETH may trigger a new round of frenzy, will AI coins take off?
🔥It's exploded! The Federal Reserve's rate cut probability for December has soared to 71%📈, will this operation before Christmas rewrite the crypto market landscape? Just after experiencing a flash crash of 4 billion in BTC, the crypto circle can no longer sit still, funds have long been flowing in secretly, are you still waiting for a pullback?
Current interest rates remain at 3.75%-4.00%, after two rate cuts this year, the cooling labor market and easing inflation combined with the end of quantitative tightening, the logic for a rate cut is fully loaded! Although there are significant internal divisions within the Federal Reserve, Powell has stated that it is “not set in stone”, but the liquidity flood is on its way, and risk assets will surely welcome a carnival window🎯.
For the crypto circle, a rate cut is a bombshell! Massive funds will flee low-interest financial products, with BTC and ETH being the first to bear the brunt, institutional signals for buying the dip have emerged, and the action of a whale transferring 2 billion in funds to ETH has already explained everything💥. More importantly, the AI crypto track is about to explode, with AI tokens like Render and Bittensor backed by blockchain + the AI trend, the acceleration of technological implementation in a low-interest environment directly crushes old coins! The decline in DeFi lending rates will also ignite leveraged trading, increasing market activity, and the greater the volatility, the more opportunities there are.
The stock market and bond market are resonating in sync, the US dollar is likely to weaken, and expectations for a rebound in US stocks are fully loaded, but the elasticity of the crypto circle far exceeds that of traditional markets, this wave of dividends must not be missed. However, caution is needed! If the rate cut is interpreted as a signal of recession, there may be short-term volatility and a washout, but the long-term liquidity easing background remains unchanged, and a pullback is a great opportunity to get in🚀.
Now the focus should be on non-farm payroll data and inflation reports, once positive news lands, the market may not give a chance to hesitate! Do you think that after the Christmas rate cut, will BTC hit 120,000 first or will ETH break 5,000 first?
