Woken up in the middle of the night by a notification on my phone about the Federal Reserve's lightning-fast interest rate meeting, which breaks a forty-year convention, making a significant decision in just one hour. Once the news broke, global markets became lively, and the cryptocurrency space felt that major changes were imminent.
There are many puzzling aspects to this operation: there are significant internal disagreements within the Federal Reserve regarding rate cuts; one faction advocates a cut of 50 basis points, while another wants a cut of 75 basis points, leaving retail investors confused and increasing market volatility.
$29.4 billion in institutional funds have positioned themselves early, and considering the liquidity situation, there may be a large influx of funds later; the Federal Reserve has held back-to-back closed-door meetings for two days, issuing alarms in the repo market, and institutions are urgently adjusting their positions, indicating that there are places in the market where funds are lacking; the interest rate meeting ended in one hour, and the lightning decision seems to be an emergency response, leaving us unsure of the underlying problems.
U.S. mining companies and related trading sectors have risen, seemingly following the same rhythm as before the last market rally. The stock market sets the stage, while the cryptocurrency space performs; it remains to be seen whether the crypto market can seize the momentum.
Many people in the crypto space are calling for ETH to surge to $10,000. Research indicates three supporting factors: ETH's leading position in the public blockchain is solid, its ecosystem is developing rapidly, and staking yields are stable, along with technical upgrades; the December upgrade will target on-chain transaction fees, significantly reducing costs and lowering the barriers for DApp usage, which is beneficial for the demand side; institutions have quietly positioned themselves early, with many having already infiltrated as seen in the holding data, and the market's enthusiasm will wait for the right moment to increase stakes.
However, the divide between hawkish and dovish stances within the Federal Reserve remains unresolved. If there is a policy shift or liquidity tightening, the market may be impacted, and the road to $10,000 for ETH will not be smooth, so we must remain vigilant.
This wave of market action feels like a roller coaster; don't let emotions sway you. I will keep a close eye on market conditions and policy changes every day, and I will announce new developments as soon as they arise. If you find my analysis satisfactory, scan the QR code below to join the chat room. It's not hard to find reliable analysts in the crypto space; let's seek opportunities in this volatile market and not miss out on good chances to make money.
