The finance minister calls for interest rate cuts, and the crypto world is getting 'wet' with news! Retail investors, don't rush; let me say a few words
Finance Minister Bessent directly lays it out: the economy isn't doing well, interest rates need to be cut to stimulate!
As soon as this was said, the market immediately perked up. The fear index had just crawled out of 'extreme fear', and now it catches a whiff of liquidity.
But friends, don’t get too excited; there's still the ‘expectation game’ between the finance minister's words and the Federal Reserve's actions.
With liquidity coming in, the crypto world is definitely the first choice for hot money, but how to catch that liquidity requires strategy.
What impact will it have on the market?
In the short term, emotions will definitely be ignited. With expectations of rate cuts, cheap funds may rush into the crypto market, with core assets like Bitcoin and Ethereum likely to rise first. But remember, 'expectations are most valuable'! Once the rate cuts actually happen, it may backfire. Additionally, if the dollar weakens, cryptocurrencies priced in dollars will become more attractive. However, the market is currently very fragile, and if the rate cuts are not as strong as expected, a pullback can happen in an instant.
What should retail investors do? Don’t be cannon fodder!
Maintain core positions: BTC and ETH are like big ships; when liquidity arrives, hold steady and don’t get shaken out by volatility.
Keep enough ammo: Don’t go all in! Hold some stablecoins, and when the market gets hit by news, buy in batches at lower prices. The finance minister's words do not mean immediate rate cuts; there will be repeated fluctuations in between.
Avoid high leverage: Market volatility is increasing, and excessive leverage can easily lead to liquidation.
Keep a close eye on macro signals: Non-farm payroll data and CPI releases can easily change the market direction.
Personal opinion
The finance minister and the Federal Reserve are essentially working together to support the economy. But to profit in the crypto world, one must learn to 'buy expectations and sell facts'. Institutions have already laid out their plans; retail investors shouldn’t chase high prices but patiently wait for a pullback. True big opportunities often appear when the market is panicking, and you dare to bottom out.
Want to know which altcoins might take off with this wave of liquidity? Which indicators can predict the trends after the rate cuts land?
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I am Youyuan, sharing only the essentials that retail investors can understand! #BTC #ETH
