The Federal Reserve lowered interest rates by 25 basis points last night, completely as we anticipated, and the trend is pretty much in line with our previous judgment. Once the rate cut news was announced, the market surged for a moment and then turned downward.
Bitcoin also cooperated well; as soon as Powell finished announcing the rate cut, it immediately surged to 94,000, but didn't hold for long and fell back to around 90,000. What does this indicate? It shows that the market has long lost enthusiasm for this rate cut, and the good news has already been largely digested.
Don't expect the Federal Reserve to be generous with rate cuts anymore! Their dot plot indicates that there will be at most one cut each in 2026 and 2027, and this rate cut pace is as slow as a snail. Moreover, there is still disagreement within the Federal Reserve; some are worried about inflation returning, while others fear rising unemployment. Powell himself is also in a dilemma, saying that whether to cut rates next depends mainly on employment data. Goldman Sachs is even more direct, stating that preventive rate cuts have reached their limit and any further cuts will only happen if labor market data worsens.
So, everyone should not think that a rate cut means money falling from the sky. A real bull market relies on sustained monetary easing. With the Federal Reserve being so stingy now, where will the new funds for the market come from? Just look at the data; retail investors are no longer following the trend and have been drawn away by gold and silver or scared off by the previous large drops, while institutional funds are also being cautious.
My view is very clear: don't act impulsively! Right now, Bitcoin is just in a volatile adjustment; ups and downs are normal. If you want to buy at the bottom, that's fine, but you need to do it in batches and be prepared for it to continue oscillating or even drop again. Those who increase leverage and bet everything hoping to get rich overnight may very likely be eliminated by the market in the next wave.
To summarize: the rate cut news has landed, and the benefits have been fully released. The direction of the real market trend will have to wait for the next key data to come out. Before that, everyone should observe more and act less, and avoid unnecessary fuss.
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