Time is running out for the cryptocurrency world! Powell is about to launch an 'offensive'.
Many people believe that interest rate cuts are beneficial, but what is more concerning is Powell's upcoming speech. This interest rate cut seems more like a forced decision, as he had previously made it clear that he did not want to cut rates. So after announcing the rate cut at 3 AM on Thursday, his speech at 3:30 AM is likely to be very tough, laying the groundwork for a pause in rate cuts next time, which could easily scare the market.
After the rate cut, the interest rate will drop to 3.5%, which is already a neutral level, not considered restrictive anymore. However, inflation is still high at 3%, far above the Fed's target of 2%, and the economic data is also quite good. In fact, the Fed has little reason to continue cutting rates, which has also been Powell's previous stance.
Therefore, I predict that after the rate cut, the market is likely to take a sharp downturn and begin a period of adjustment. I have already positioned myself with a 2x long-term short position, and with the overall bear market environment, the odds are relatively high. If you prefer stability, you can also refrain from trading and wait for a significant drop next year to buy the dip. Because the situation is expected to gradually improve in the second half of next year, the new chairman appointed by Trump may come to power and aggressively cut rates, leading to a resurgence of capital in the market and initiating a potential upward cycle lasting 3-5 years.
The next six months can be described as the darkest moment before dawn. The bulls are just taking a temporary rest and will return in the second half of next year. Everyone should stay alert and seize this market opportunity with me to strive to rewrite their own wealth trajectory!
There are always opportunities in the market; the key is to operate calmly. Bai Yue will continue to help everyone keep an eye on on-chain dynamics and move forward steadily together! Follow Bai Yue and participate in every offensive of the Bai Yue villagers! Bai Yue will announce the specific entry times and real-time news in the village every day!
