$JUV
The internal conflict of the Federal Reserve has torn apart the facade! Powell's firm push for interest rate cuts encountered a backlash, will the cryptocurrency market be shaken up?
This wave of internal strife within the Federal Reserve has directly shaken the financial circle — under pressure, Powell forcibly decided to cut interest rates by 25 basis points, resulting in a split into three factions: one insists on maintaining stable rates, believing that current inflation has not met the standards for easing; another calls for further interest rate cuts, advocating for stronger economic stimulus; and more aggressively, a group of non-voting members directly issued silent opposing votes to confront Powell, leading to an uncontrollable situation.
Key data is even more heartbreaking: among the 12 regional Federal Reserve banks, only four support the rate cut, and six core policymakers explicitly require maintaining the 3.75%-4% interest rate range. The former Philadelphia Fed chair was particularly outspoken, stating that this interest rate cut is a decision error! Powell claims that the differences are normal operations, but anyone with clear eyes can see that this veteran is already unable to maintain order, and the consensus issue that he cannot manage, the new chair next year is likely to face a hellish start.
And this internal struggle is digging a 'sweet trap' for the cryptocurrency market: theoretically, interest rate cuts will release liquidity, benefiting risk assets like Bitcoin and Ethereum, but the severe divisions within the Federal Reserve have turned subsequent policies into complete blind boxes, making it impossible for the market to grasp whether to continue easing or suddenly tighten. Cryptocurrency prices will likely fluctuate repeatedly in response to news, with the amplitude of fluctuations only getting larger.
Adding to the complexity, the market is hiding dual contradictions: last week, initial jobless claims surged by 44,000, and giants like FedEx and HP have consecutively started laying off employees, providing the rate cut faction with 'stimulus ammunition'. Short-term expectations for liquidity recovery may support the cryptocurrency market; however, on the other hand, with inflation targets far from being met and a backdrop of policy instability, whether this support can withstand selling pressure is completely unknown.
Now the key question arises: is this internal conflict within the Federal Reserve a short-term favorable window for the cryptocurrency market, or the calm before the storm? Will you choose to hold and observe, or take the opportunity to buy the dip or sell at the peak?