#美联储FOMC会议 Hello, everyone! Today let's talk about the latest actions of the Federal Reserve - a 25 basis point rate cut! This is a significant event for our cryptocurrency market.

News Overview

According to the latest news, the Federal Reserve cut rates by 25 basis points in May, lowering the federal funds rate to 2.7%. This is the second rate cut this year (the FOMC meeting is expected to have one more rate cut this year, with a probability of about 17%). Currently, the market's expectation for continued rate cuts by the Federal Reserve is as high as 97.3%! If another 25 basis points are cut by the end of the year, the rate will drop to 2.4%, with a cumulative cut of up to 50 basis points. However, there is also significant volatility in market expectations for rate cuts, with a 0.8% probability of no rate cut this year.

Analysis of the Impact of Rate Cuts on the Cryptocurrency Market

Increased liquidity, favorable for the cryptocurrency market

The rate cut by the Federal Reserve means that market liquidity will increase, and the cost of funds will decrease, potentially leading to more capital flowing into risk assets like our cryptocurrencies! Historically, rate cut cycles have often acted as a catalyst for the rise of mainstream coins like BTC and ETH. Especially for BTC, it may welcome a wave of capital influx, so everyone should keep an eye on it.

Market sentiment is high, short-term volatility intensifies

The 97.3% expectation for a rate cut indicates that market sentiment is very optimistic, but the 0.8% probability of no rate cut also reminds us that market volatility may increase. In the short term, altcoins may experience significant fluctuations, so it's advised to manage risks well and not chase high prices!

Long-term trend: A rate of 2.4% may become a key point

If the rate really drops to 2.4% by the end of the year, it would be a major positive for the cryptocurrency market! In a low-interest-rate environment, investors tend to seek high-yield assets, which could attract more institutional funds into the cryptocurrency market. However, a cumulative rate cut of 50 basis points could also overheat the market, so everyone should be cautious of the risk of a subsequent policy shift.