$ETH Bank of America warns: Be careful! If there is indeed a rate cut next week, the market may actually collapse?

Brothers, the rate cut that the market is expecting from the Federal Reserve may hide traps! A recent report from Bank of America gives an counterintuitive warning: If the Federal Reserve adopts a dovish rate cut next week, signaling excessive caution about the economy, it may actually strangle the end-of-year "Santa Claus rally". The logic is: excessive dovishness = implies the economy may be worse than expected = undermines market optimism.

This has a direct impact on the crypto market. If this logic holds, the end-of-year rebound in U.S. stocks may be thwarted, and risk assets like Bitcoin will find it hard to stand alone, leading to increased volatility. This reveals a core contradiction: the market both hopes for a rate cut and fears the economic truth behind the rate cut. Any "expectation difference" will trigger turbulence.

A few reminders for retail investors:

Understand market sentiment: Current market sentiment is weak and sensitive, and the interpretation of news will be very complex. Don't simply think "rate cut = surge".

Focus on Powell's "tone": More important than the rate cut itself is Powell's expression of the economic outlook. Whether he is "cautiously optimistic" or "truly worried" will determine the market direction.

Control positions, watch more and act less: At such a critical juncture, ensure your position can withstand severe two-way volatility. Let the market digest the news first before taking action.

In short, this is not a time to be blindly optimistic. A little more vigilance can help preserve hard-earned profits.

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