When the Federal Reserve sneezes, the crypto space catches a cold!
The Federal Reserve just finished its meeting, announcing its interest rate decision and their little notebook predictions for the future economy. This thing has a huge impact on our crypto space; simply put:
Interest rate hikes or hawkish stance: Bad news! The dollar is more valuable now, money runs back to buy U.S. Treasury bonds, who still plays high-risk Bitcoin and Ethereum? Bitcoin often drops alongside U.S. stocks. Just think about 2022, it was a disaster, BTC dropped nearly 80%! The nights of receiving liquidation texts, who understands!
Interest rate cuts or dovish stance: Good news! Turn on the faucet wider; with more money and nowhere to go, it might just run to speculate on coins! Historically, before and after rate cuts, Bitcoin often leads the charge, like that rebound at the beginning of this year, how sweet it was!
What does this meeting focus on?
Number of rate cuts: Previously said there might be 3 cuts this year; now if they change to say only 1 cut, or even none... game over, it will definitely crash in the short term, BTC might touch the $60,000 floor! Heartbroken... But if they stick to 2 cuts, then there’s still something to play with, just some fluctuations.
The Federal Reserve officials' 'dot plot': If more big shots support rate cuts this year, the market might get excited, and coin prices could take off early! Looking forward to it!
Special gameplay in the crypto space:
Leverage is as fierce as a tiger! In that hour after the news broke, prices jumped ±5% as if playing around; high leverage can explode in minutes, making you question life! Heart rate accelerator confirmed.
Altcoins are more exciting! In bad news times, DeFi, Meme coins, etc., drop way harder than Bitcoin, and liquidity can just vanish.
Hawkish news: Quickly reduce leverage and hold more stablecoins for safety! Don't be stubborn!
Dovish news: Don't hesitate, buy some BTC and ETH spot in batches! For the bold, check out ETH, SOL, or RWA concepts.
Mediocre news: Engage in stablecoin investment, annualized returns can sometimes reach 15%+, stable happiness is not bad.
Follow D for first-hand information and in-depth analysis of market trends from a professional team; doubling your assets is not a dream.
