The Federal Reserve is in turmoil! Can we expect interest rate cuts this year?
There has been a heated debate within the Federal Reserve! At the recently concluded meeting, surprisingly, three prominent members voted against the decision. Chicago President Goolsbee stated directly: it's too soon to cut rates; inflation has not met the target for four and a half years, and the public is still worried about prices—what's the rush?
On the other hand, Philadelphia President Paulson expressed concerns about the job market's resilience, stating that the previous cut of 75 basis points was essentially ‘buying insurance.’ One fears inflation rebounding, while the other fears a surge in unemployment; even the Federal Reserve is confused!
In my opinion: this situation is actually favorable for the crypto market! Why? Hesitation over interest rate cuts, along with fluctuations in economic data, can easily trigger risk-averse sentiments in the market. If funds have nowhere to go, they might flow into assets like Bitcoin. However, there will definitely be volatility in the short term; the firmer the Federal Reserve's stance, the more anxious the market will become.
For retail investors:
1. Don't chase after rises and falls; there's a lot of noise in the news that can easily shake you out of the market.
2. Buy in batches when there are declines, especially during sharp drops, and hold onto core assets.
3. Keep some powder dry; significant moves may need to wait until next year when the direction is clearer.
By the end of the year, will this market trend be a pie or a trap? Follow me for an analysis tomorrow of the real script behind the Federal Reserve's ‘argument’ and find out which coins may secretly take off!
