$BTC On December 11, the Federal Reserve announced a 25 basis point rate cut to 3.50%-3.75%. The core impact on the crypto space boils down to two main points: an influx of capital and the need to carefully choose cryptocurrencies, avoiding blindly following trends and falling into traps!

After the rate cut is implemented, savings and bond yields will directly decline, and a large amount of profit-seeking capital will have nowhere to go, inevitably gravitating towards high-return sectors. The crypto market, being highly elastic, will definitely attract a wave of off-market funds. Historical trends show that in previous rate cut instances, major cryptocurrencies like Bitcoin have experienced clear price increases. This time, market expectations are at an all-time high, so Bitcoin is likely to maintain its strength, and leading cryptocurrencies with actual ecological support, like Ethereum, will also benefit. The main market trends are solid!

However, don't think that all cryptocurrencies will rise; the differentiation will only become more severe! Mainstream cryptocurrencies are resilient and favored by capital, leading to a steadier and more sustainable upward trend. In contrast, most obscure altcoins lack fundamental support and may only rise temporarily by following trends, making them susceptible to sharp corrections. Their volatility could spike, and if you don't have control, it's best to avoid them. Additionally, be wary of two major risks: first, that many cryptocurrencies may have already priced in good news, leading to a sell-off after the rate cut; second, the crypto market is inherently volatile, and with regulatory dynamics being uncertain, blindly chasing highs with leverage can easily lead to being harvested by market manipulators.

Ordinary players should keep it simple: focus on the core. Prioritize heavy investments in mainstream cryptocurrencies like Bitcoin and Ethereum, steer clear of nameless and ecologically unsupported junk altcoins, manage your positions well, avoid high leverage, and preserving your principal to seek returns is more important than anything else! #美联储降息