Significant historical moments in the world happen around us
In the early morning of the eighth district, the market witnesses history again:
The Federal Reserve cut interest rates by 25 basis points, continuing to ease for the second month in a row,
but Powell's statement that "a rate cut in December is far from a done deal,"
in an instant brought the market back from celebration to calm—甚至恐慌.
This is not an ordinary interest rate decision,
but a rare performance of "hawkish and dovish" together:
Some advocate keeping interest rates unchanged,
while others demand a direct cut of 50 points.
And Powell's "hawkish knife" after the rate cut,
wakes the market up completely:
"The data is not enough; we must be cautious."
"How will December go? There is a lot of disagreement; don't be too optimistic."
The result?
Expectations for a rate cut in December plummeted from 90% to 65%,
Bitcoin fell in response, nearly 130,000 people were liquidated,
more than $560 million evaporated within 24 hours.
Why did a rate cut lead to a crash instead?
Because the market is not consuming "rate cut dividends,"
but rather the "expectation gap."
A rate cut itself is a good thing, lowering the cost of funds, increasing liquidity,
but Powell extinguished the fantasy of "continuing to inject liquidity."
Liquidity will slowly flow to the crypto market,
DeFi and high-yield protocols will become active again,
but in the short term, volatility is the main theme.
What to watch next?
The economic data after the U.S. government shutdown ends,
whether inflation is manageable,
and the political drama of the Federal Reserve chairman candidate at the end of the year.
If you are still in the market,
remember:
Don't let one or two messages lead the rhythm,
don't let leverage become the straw that breaks your back.
The market is always changing,
but those who live long understand:
To control positions in uncertainty,
to maintain rhythm in volatility.
Or, you can get on the bus with me
#美联储会议