Powell stands firm against Trump! The Federal Reserve's interest rate cuts depend on tariffs, urgency is useless!
Federal Reserve Chairman Powell has spoken: economic data should warrant an interest rate cut, but there is fear that new tariffs could push inflation back up! For now, the Fed will stay put. The likelihood of a rate cut next month is very low; we basically have to wait until September to see the actual impact of tariffs on prices. It doesn't matter how much Trump pushes, the Fed is being very cautious this time.
Yesterday, it almost dropped to $98,000, but today it bounced back to $106,500. Is it that simple for the market to find reasons to fleece investors? Looking at the chart, Bitcoin's rebound might still push a bit higher; the upper edge of that descending channel at $108,500 is a resistance level. If you want to short, keep an eye on the range from $106,500 to $107,300; if you want to buy the dip, there may be opportunities around $102,500 to $103,500. But the end of the month is here, so buckle up! Although the rebound after the crash was quick, money hasn't really followed in; it's all very superficial. Some altcoins might rebound a bit, but the old routine for retail investors is to always try to catch these small coins' bounce backs, so be careful of getting chopped up! In a volatile market, both longs and shorts can make moves, but stop losses must be strictly enforced!
The Federal Reserve is also worried that tariffs will drive up prices this summer, disrupting the decline in inflation. However, Powell believes that the economy and employment are strong, and there are doubts about whether companies can pass on costs, so there’s no rush for a rate cut. No one has responded to Trump's calls for a rate cut; there is also internal disagreement within the Fed, with most expecting a cut this year and a minority opposing it. The key will be the inflation data for June and July and the impact of tariffs on actual commodity prices!
There is good news to mention: Hong Kong's major brokerage, Guotai Junan International, has been approved, and clients can now directly trade cryptocurrencies like Bitcoin and Ethereum! This means real money might be coming in! So even if there’s no rate cut in July, the market might soar to new highs like in April and May—crashing and then violently bouncing back, clearly indicating a desire not to let retail investors pick up bargains. For those shorting or looking to short, risk management must be in place, and be wary of surprise attacks! Don't get trapped by the temptation of small coin rebounds.
Are you trapped? When to buy the dip? Still the same words, feeling lost and helpless not knowing what to do, click on my avatar to follow me, let's ride through the bull market and seize this major opportunity together.
