The boots hit the ground, but the water hasn't been poured. Brothers, yesterday at three o'clock in the morning, the Federal Reserve revealed its cards: the interest rate dropped from 4.00% to 3.75%, just as everyone guessed.
But did you notice? The market wasn't excited at all, and the four words with less impact have already explained everything.
Why does such a significant interest rate cut feel like a punch hitting cotton?
Because the market plays on expectations, not news. Over the past month, from Bitcoin to U.S. stocks, the expectation of a rate cut in December has already been fully priced in. It's like the whole class knows that candy will be handed out today; when it actually happens, no one will scream. This is called the good news being fully priced in; in professional terms, it's called buying expectations and selling facts.
So what should we do now? Watch the show, don't act.
The real director isn't this data, but Fed Chairman Powell, who will speak at 3:30 AM. Now everyone is waiting for his cues:
Is he going to say it's almost over, and from now on we need to watch the data hawkishly, which might cause the market to dive?
Or is he going to say there has been progress on inflation and there may be continued easing in the future, which might push risk assets up again?
Right now, before Powell gives a clear signal, there is no direction. Watch more and act less; don't go long and don't go short; just be a slippery one.
Pay close attention to Bitcoin's attitude towards $95,000; this is the short-term dividing line for strength and weakness. Below, keep an eye on the support strength at $90,000.
Finally, don’t think that a rate cut necessarily means a rise; the market has entered a complex phase. Protect your principal, wait for the market to choose its direction itself; this is more reliable than guessing right now.
Sister Xu is planning to lay low for a potential coin that has a strong possibility of a significant surge, with an expected range of 7-10 times; friends who want to catch this big opportunity can share directly in the chatroom below.
