The interest rate cut in the early morning, the trap at midnight? When BTC responds to the Federal Reserve with a sharp decline, the market has sensed the hawkish nature.
The Federal Reserve cut interest rates by 25 basis points in the early morning, a news that should have thrilled the market, but BTC and ETH experienced severe fluctuations, and neither Wall Street nor Trump were convinced. Is this a signal that the bull market can continue to surge, or are the bulls about to fall into a trap?
This interest rate cut has many issues, the core being it is not enough to quench thirst:
Hawkish nature: The Federal Reserve has cut rates, but is particularly cautious in its statements. Powell directly said that the economy hasn't changed much, and the market interpreted this as possibly the last rate cut for a while. It's like turning on the faucet, but immediately saying it needs to be turned off again; who can handle that?
Not pleasing either side: Trump criticized the cut as too small, demanding a larger reduction. However, Wall Street and the cryptocurrency market responded lukewarmly, because this seemingly dovish cut contains hawkish warnings, and the future direction is fundamentally uncertain.
So why didn't BTC and ETH soar after the interest rate cut announcement? The market exhibited a classic trend of buying on expectation and selling on facts, for the following reasons:
The logic has changed: The previous surge was due to everyone betting that the Federal Reserve would continue to maintain accommodative policies. Now that expectations have been met, but no one knows what will happen in the future, some profit-takers have decided to leave the market and observe.
The focus has shifted: The market began to ponder whether the valuations of risk assets can hold up under the possibility of long-term high interest rates. ZEC observation: In an uncertain macro environment, the performance of the privacy sector ZEC is closely related to the overall market's risk appetite.
If the broader market enters a period of fluctuation, it may take longer to accumulate strength.
Although the broader market is slightly sluggish now, opportunities to earn USDT will come! Be patient and wait for the right moment; the chat room has dropped the points below for everyone, and I will share trading points later.
