Powell's speech this time sends crucial signals; we ordinary people must keep a close eye on this point to protect our wallets! To get straight to the point — the Federal Reserve's decision to cut interest rates by 0.25% is far from a done deal; there has been a huge internal debate! Some believe it shouldn't be cut at all, while others feel the cut is too small, indicating that even the Federal Reserve is uncertain, and the market shouldn't expect an easy ride.
The key action is coming: In December, the Federal Reserve will stop tapering, which is akin to them preparing to lend money — just like you need to sort out your accounts before borrowing money. Right now, they are making that preparation. Borrowing money means paying interest, and the current interest rate for borrowing is 4%. By the time they borrow in December, there’s no way to negotiate for a “lower rate,” so the probability of another rate cut in December is almost zero.
The market response is very direct: As soon as the news broke, the dollar immediately strengthened, while Bitcoin and gold plummeted. The logic is clear — as the dollar gains value, other assets naturally come under pressure.
I can tell you clearly: from now until Powell steps down, it is highly unlikely there will be another rate cut! The market is likely to enter a “slow decline mode” — not a straight drop, but rather a pattern of “three days down and one day up, with the overall trend downward.” The kind of market on October 11 will be repeated in the future. Bitcoin's price has already been driven to the sky, clearly preemptively exhausting its increase. Large funds have spent so much money to pump up the market; they must find ways to let retail investors pick up shares at high prices, allowing them to successfully offload and escape.
Remember, if the dollar is strong, other assets need to be cautious. This wave in the market is like “boiling frogs in warm water,” don’t wait until it’s too late and your money has already shrunk! Buckle up, don’t be fooled by short-term rebounds; the long-term downward trend is a hard fact. My stance is very clear: now is not the time to rush blindly; protecting your wallet is more important than chasing highs and cutting losses!
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