On May 8, the Federal Reserve's "Announcement Day," the market's heartbeat quickens! On May 8, the global financial community is collectively focused on the Federal Reserve, like lottery players waiting for the draw, hoping to hit the jackpot of interest rate cuts. But reality is likely to disappoint; the Federal Reserve may not only refrain from cutting rates, but also might not even give hints of "future cuts," leaving the market anxiously waiting.
The Federal Reserve has two ironclad rules for interest rate cuts: first, inflation must be completely extinguished, and prices must not rise; second, the economy must be on the brink of collapse. Looking at the current data, inflation is still "sticking around," and the economy is not on the verge of collapse, making a rate cut in May highly unlikely. Coupled with changing tariff policies, the dream of a rate cut becomes even more difficult to achieve.
While the financial market is uneasy, the cryptocurrency sector is also restless. On May 7, Ethereum underwent a major upgrade, and it was expected to "take off," but the market response was lukewarm. Before the upgrade, Ethereum's price was halved from $4,000, and although this time it might rise before falling, no one can predict the market.
Bitcoin has also been weak lately, continuing to decline. The price level above $90,000 feels like high walls that cannot be breached; the key support line is at $91,500, and if it falls below this, the price could drop to $89,500 or even lower. Ethereum's $1,810 is also a "life and death line"; if it can't hold, any rebound will just be a "false signal."
The market changes rapidly, and investors must stabilize their mindset, keep an eye on Federal Reserve policies, and operate rationally to maintain their footing amidst these turbulent waves.