🎄The Federal Reserve is giving a gift: lowering interest rates while easing, is the Christmas bull market stable?
Last night, the Federal Reserve's actions were nothing short of a grand spectacle! Not only did they lower interest rates by 25 basis points, but they also suddenly announced the launch of a bond-buying program. These seemingly contradictory moves sent the market into a frenzy—are they saving the market or laying new traps?
🔥 Key Highlights:
1️⃣ Hawkish rate cuts? Unprecedented internal divisions!
The interest rate was lowered to 3.5%-3.75% without suspense, but surprisingly, 3 out of 12 voting members opposed it on the spot! Even more shockingly, the dot plot shows that nearly half of the members believe the rate should not have been cut this time, with only one more rate cut potential remaining by 2026. Powell said, "to prevent economic slowdown," but his actions are very honest—the inflation remains high at 2.8%, making the path of rate cuts more cautious than expected.
2️⃣ Opening the floodgates early! $40 billion of liquidity injected directly.
The real bombshell here: the Federal Reserve suddenly announced the purchase of short-term government bonds, with the first round injecting $40 billion! This is equivalent to opening the faucet early, injecting a strong stimulant into the year-end market. It's important to know that liquidity is the gasoline for the crypto market, and this move has directly fueled the Christmas market trend.
3️⃣ Strange data: New jobs exceeded expectations, but the unemployment rate soared.
6.4 million new jobs in November seem good, but the unemployment rate skyrocketed to 4.6%! Even more bizarre is that the October data was revised down by 105,000 (blaming the government shutdown). This fragmented data has made the market even more convinced: there will be further cuts next year!
🚀 What does this mean for our crypto circle?
Historical experience tells us: Bitcoin never misses the Federal Reserve's easing cycle. This "rate cut + balance sheet expansion" combination is like lowering the cost of funds while increasing market ammunition. Although inflation concerns remain, the improvement in liquidity is a fact.
Currently, Bitcoin is fluctuating around the 70,000 mark, and Ethereum's Cancun upgrade countdown is on—liquidity tailwind + technical catalysts, doesn't this script feel familiar?
👇 The key question is:
Do you think this round of "policy red envelope" can push Bitcoin to break through its previous high, or is the good news already priced in? Which track do you favor the most in December? We look forward to your insights in the comments!
(Investment advice? None! I’m only responsible for relaying signals, you decide your own actions. Risk management is always the top priority, don’t let FOMO cloud your judgment!)
