Powell's "Tariff Card" Disrupts Rate Cut Rhythm! Bitcoin Performs a $100,000 Bungee Jump
Powell has laid it all on the table this time, stating that the recent economic data was good enough for a rate cut, but he is worried that the tariffs initiated by Trump could drive up prices and lead to a rebound in inflation. Therefore, the Federal Reserve has decided to wait and see, at least until September to assess the situation; Trump’s urgency is of no use, as the Federal Reserve is simply not buying it.
Bitcoin has been on a thrilling roller coaster these past two days, plummeting from $98,000 and then bouncing back to $106,500, essentially filling in the hole from the previous days' drop. Now the key level to watch is whether it can break through $108,500; if it doesn't reach that, it may pull back further. The support range below is between $103,500 and $102,500, and if it drops here, it might be worth considering buying the dip. However, be cautious, as the market is prone to sudden changes at the end of the month, and major players often make surprise moves, so don't get caught in a back-and-forth trading trap.
There’s also good news: Guotai Junan has obtained a license in Hong Kong, allowing for the legal trading of Bitcoin, Ethereum, and other cryptocurrencies. This means there may be new funds entering the market. Even if the Federal Reserve does not cut rates in July, the market could continue to rise. However, don’t be too greedy; if you're looking to short in the short term, you could consider trying around $107,300, but make sure to set a stop loss to prevent being caught off guard by a sudden spike.
In summary, the market is very conflicted right now; on one side, the Federal Reserve is hesitant to easily cut rates, while on the other, funds may continue to speculate on cryptocurrencies. There are opportunities for both bulls and bears, but the risks are also high, so don’t hold onto losing positions—if you need to run, just run!
Next, I will continue to layout my strategies; instead of blindly searching for the best entry and exit points and risking losses, it’s better to follow what I do and those who agree with me can join directly.