⚡️ KIYOSAKI: “The good news… gold and silver, ‘God’s Money,’ and Bitcoin and Ethereum, ‘people’s money,’ go up in value as the fake fiat money system collapses."
People celebrate rate cuts like they’re the start of a bull market. That’s a dangerous mistake.
The truth is: The bull market thrives as long as rate cuts don’t happen and starts dying the moment cuts begin.
Here’s why:👇🏼
Why no rate cuts help extend the bull market:
1. No cuts = no crisis The Fed only cuts when it sees real risk. If they’re holding rates high, it means the economy is stable. That stability gives markets the green light to keep climbing.
2. The promise of future cuts is bullish the cut itself is not. As long as investors expect a rate cut down the road, they stay confident. It creates a “soft landing” narrative, which fuels optimism and keeps risk-on behavior alive.
3. Actual rate cuts = something broke When the first cut happens, it’s not because everything is fine it’s because growth is slowing or cracks are forming. That’s when sentiment starts to shift.
4. Markets front-run the pivot. Historically, the big move happens before the first cut. Once the cut lands, smart money rotates out. Retail buys the news and gets trapped at the top.
5. Liquidity doesn’t save a weak economy instantly. Even with lower rates, earnings, growth, and employment can lag. A cut doesn’t fix fundamentals overnight and the market starts to price that in.
Bottom line: No rate cuts = confidence, strength, extended bull run. First rate cut = signal that the cycle is turning.
The pivot isn’t the beginning. It’s the warning shot. Know the difference or learn it the hard way.
If this was helpful, please share & follow for more. 💚
🚨 Rate cut odds for a 25 bps cut at today’s #FOMC are now 87.6%.
But here’s how $BTC performed after the last 4 FOMC meetings: • June 18: No cut: -6.36% • July 30: No cut: -5.62% • Sept 17: 25 bps cut: -8.10% • Oct 29: 25 bps cut: -12.04%
VOLATILITY always shows up when Powell does. Trade safe! ⚠️