🚀【The 'Plunge' of ETH and Fed Rate Cut Expectations】🚀

Brothers, recent US economic data and the Fed's movements have caused the crypto market to 'stir' again! The annualized quarter-on-quarter initial value of the US GDP deflator for the first quarter reached 3.7, far exceeding the expected 3.1, with a previous value of 2.3. As soon as this data came out, the market exploded! Many people believe that the decline in ETH is the last drop before a major rise, and the Fed's rate cut path has also become the focus of attention.

📈US Economic Data and ETH's Decline

• Economic Data Exceeds Expectations

The unexpected performance of the US GDP deflator for the first quarter shows that inflationary pressures in the US economy still exist. This data is an important indicator of economic inflation, and its rise means that the pressure of rising prices is still present. Generally speaking, economic data that exceeds expectations will enhance the market's expectation for the Fed to maintain high interest rates, which is not good news for cryptocurrencies.

💡Analysis of the Fed's Rate Cut Path

• Rate Cut Expectations Heat Up

Although the US GDP deflator for the first quarter exceeded expectations, the market's expectations for the Fed to cut rates still exist. From recent economic data, inflation in the US has begun to show signs of slowing down, with key indicators like core CPI falling below expectations. This suggests that the Fed may start its rate cut path in the third quarter.

• Impact of Rate Cuts on ETH

If the Fed initiates a rate cut path, it could be a significant positive for ETH. Rate cuts typically lower market interest rates and increase market liquidity, which is a positive signal for the cryptocurrency market. From historical experience, rate cut cycles often usher in a wave of increases in the cryptocurrency market.

📊Operational Strategy

• Focus on Key Data

Next, everyone should closely monitor the Fed's policy dynamics and key economic data from the US, such as CPI, unemployment rate, etc. This data will directly affect the Fed's decisions, thereby influencing the price trend of ETH.

⚠️Risk Warning

The investment market is unpredictable, and the above views are merely personal analysis, not constituting any investment advice. The price of ETH is highly volatile, and market risks cannot be ignored. Please operate cautiously based on your own risk tolerance, and do not blindly follow trends. Investment requires caution; preserving capital is the key!