Tonight the Federal Reserve stirs up a storm again! Where will Bitcoin and Ethereum go from here?
At 2 AM on May 8, the Federal Reserve's interest rate decision is undoubtedly the focal point in the current cryptocurrency circle! In my opinion, its outcome may present two completely different directions:
The first scenario: If the Federal Reserve chooses not to cut interest rates in May, this expectation has actually been prepared for by many investors. If they really do not cut rates, the price of Bitcoin is likely to experience a wave of correction, and the cryptocurrency assets we hold may face the risk of shrinking.
The second scenario: If the Federal Reserve directly announces a rate cut in May, then the price of Bitcoin may soar like a rocket! Just thinking about that scene is enough to get the blood pumping.
Currently, institutions in the market seem to be in a frenzy, scrambling to buy Bitcoin. I must point out that once the price of Bitcoin breaks through the $100,000 barrier, the “southbound capital” amounting to $3 billion is likely to be quickly absorbed by the market.
Regarding tonight's market trend, I personally tend to believe that there will first be a wave of upward movement, followed by a correction. From the news perspective, friends may try to take a short-term light position to go long and seize the rebound opportunity. However, when the price reaches a certain high point, caution is needed to layout short positions to cope with possible correction risks.
Please be sure to note that the cryptocurrency market is highly volatile, and investments should be made cautiously. Before making any trading decisions, please be sure to fully understand market dynamics and risk factors.
