Brothers, what is the hottest topic in the market recently? — The Federal Reserve's interest rate cut.
Some say that the interest rate cut is a signal that good news has been exhausted, which is bad news; others say it is not that important.
Let me tell you directly: it is very important! An interest rate cut is a super turning point for global finance, and you absolutely cannot ignore it.
Let's review: an interest rate cut = the signal for the market to start
📌 2020 Pandemic
The US stock market experienced three consecutive circuit breakers, the world was shocked, the Federal Reserve urgently cut interest rates, and the US stock market was directly "lifted from the ICU to the KTV".
The A-share market rose from 2650 to 3700, taking a year to enter a bull market. Were those two years very comfortable for everyone?
📌 At the end of 2021, the Federal Reserve announced an interest rate hike
The A-share market peaked, dropping from 3700 to 2900 in 4 months, entering a bear market. Throughout the interest rate hike cycle, life was tough. It can even be said that the Federal Reserve's aggressive interest rate hikes indirectly contributed to the outbreak of the Russia-Ukraine conflict.
📌 In September 2024, the Federal Reserve will cut interest rates again
China will follow suit immediately, and with the policy announcement, the A-share market's "924 rally" directly rose 1000 points in six trading days.
Do you understand?
An interest rate cut ≠ small actions; it is the stabilizing force of the world economic landscape.
So what about this time?
After pausing interest rate cuts for 9 months, the Federal Reserve is preparing to cut rates again.
My personal judgment:
A direct rise of 1000 points like the "924 rally" is very difficult;
But a trending rise similar to the one from the end of June to the end of August this year is very likely to be repeated.
What does this mean for the crypto world?
The logic of the stock market = a microcosm of the crypto world.
An interest rate cut brings liquidity release; funds are no longer absorbed by US Treasury bonds, but instead seek markets with higher returns.
The past two rounds of history have already verified: during the interest rate cut cycle, risk assets will encounter great opportunities.
So my conclusion is very simple:
From the end of September to the beginning of October, the A-share market may trend upward;
In the next 2-3 years, China's economy will rebound from the bottom, and the crypto world will also welcome a new round of prosperity;
Brothers looking to turn things around, this may be your most important window in the next few years.
In a word: The Federal Reserve's interest rate cut is always the master switch for risk assets!
Don't hesitate any longer about whether the market has arrived; history has already given us the answer.
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