The market maker has harvested! ETH big waterfall, will it continue to fall? Let's discuss the trend after the interest rate cut.
Let's get to the conclusion first: it's not done falling yet! The market's rise and fall logic over the past month is very clear: it rises ahead of the interest rate cut, then on the day of the rate cut, it starts to plummet as the benefits are fully realized, and it won't just drop for one day; it will at least fall for 1-2 weeks. So the operating logic for the next two weeks is to short at highs, or just hold onto the low-leverage long positions entered last night. The small support levels are around 3130 and 2940, but the final pullback is likely to reach the previous low around 2700. In the short term, the drop has been a bit excessive, falling directly from 3450 to 3170, which is nearly a 10% drop, so chasing shorts isn't very worthwhile. It might be better to wait for a rebound to around 3250 before shorting.
The interest rate cut is here! What exactly did Powell talk about in his speech? The two main points/qualitative changes from this interest rate cut meeting are as follows: 1. According to the latest Federal Reserve dot plot in December, the Fed's average expectation for an interest rate cut in 2026 is only one cut, which is far below the market's expectations. Therefore, there may be no interest rate cuts throughout 2026, which is consistent with Shuqin's prediction from yesterday's program.
2. After discussing the negative aspects, the Fed also offered a sweet incentive. The Fed will conduct $40 billion in asset purchases this month to expand its balance sheet, which can be considered a form of liquidity injection, starting this month. This somewhat exceeds market expectations and is a good sign.
However, the Fed emphasizes that this is not quantitative easing, as they are purchasing short-term U.S. Treasury bonds to address the current tight overnight loan market. This is not a continuous purchase; the Fed plans to stop purchasing at some point next year.
Overall, this meeting of the Fed provided a stick of no interest rate cuts and then gave the market a sweet incentive in the form of liquidity, resulting in a decent outcome. The cryptocurrency market and U.S. stocks began to rebound due to the unexpected liquidity, but since there will be no interest rate cuts at the next meeting, whether this rebound can be sustained remains a question. Everyone should be cautious about the rapid consumption of good news.
Will the Federal Reserve cut interest rates tomorrow? Will Bitcoin surge? Will Powell announce quantitative easing? By the way, let's talk about the opportunities for ZEC and BCH.
Do you know? Right now, the market is not most concerned about interest rate cuts, as they are already priced in at 100%. What the market cares about now is 1. Whether the Federal Reserve will announce a quantitative easing plan, commonly referred to as printing money, and 2. Powell's speech. 1. It is possible to announce a quantitative easing plan. I estimate that the probability of it being implemented in March is quite high, depending on the economic situation. 2. As for subsequent interest rate cuts, I am fairly certain that Powell is likely to adopt a hawkish stance, and the probability of a rate cut in January is very low. The only variable is the start time of the first quantitative easing plan; if it happens earlier, it would indeed surprise the market.
$ASTER The repurchase for the second day has also started. Yesterday 3 million U today as well. Does anyone know how long the repurchase will continue? #加密市场回调