A legendary trigger for the cryptocurrency market has emerged! On one side, the Federal Reserve's interest rate cut expectations ignite market frenzy, while on the other side, Trump swings the tariff stick declaring war on the world—under the intertwining of these two nuclear-level messages, Bitcoin is standing at the critical watershed of 110,000 USD, and a superstorm that will disrupt the crypto market is about to arrive!
1. Countdown to the Federal Reserve's interest rate cut: Global funds may pour into the cryptocurrency market wildly
According to the latest disclosed minutes from the Federal Reserve meeting, 'most officials believe that a rate cut this year may be appropriate', which directly validates the market's strong expectation for a rate cut in September. Historical data shows that after the Federal Reserve cut rates to zero during the pandemic in 2020, Bitcoin surged 800% within 12 months; and in the 2023 pause of the rate hike cycle, BTC price also doubled. This rate cut cycle will undoubtedly inject trillion-level liquidity into the crypto market!
What is even more alarming is that the minutes first mention 'the upward pressure on inflation from tariffs may be temporary', which is interpreted as the Federal Reserve's tacit approval of Trump's trade policies. While traditional financial markets tremble with policy uncertainty, Bitcoin's 'digital gold' attribute may once again explode, becoming the preferred asset for institutional funds to hedge risk!
2. Trump's tariff nuclear bomb ignites: Countdown to global market collapse
Just as the Federal Reserve releases dovish signals, former President Trump suddenly launches tariff nuclear bombs against 8 countries! Tariffs on Brazil soar directly to 50%, while 30% tariffs are imposed on countries like Libya and Iraq, and even the Philippines cannot escape a 20% punitive tax rate. This unprecedented trade war will produce a triple blow:
Emerging market currencies collapse: Currencies such as the Brazilian real and Philippine peso face depreciation pressure, and capital outflows may accelerate;
Global supply chain disruption: Sanctioned countries may use cryptocurrencies for cross-border settlements, driving a surge in demand for stablecoins like USDT;
Earthquake in US tech stocks: Costs for multinational companies like Apple and Tesla are skyrocketing, and funds may shift to Bitcoin to hedge risks.
3. Bitcoin's life-and-death battle at 110,000 USD: Technical analysis reveals an astonishing script
From the latest market chart, BTC is standing at the golden support line of 110,183 USD. If it closes below this price level this week, it may trigger a chain reaction of selling; but if it holds this line, coupled with the Federal Reserve's rate cut and risk aversion demands due to the trade war, the price is expected to soar to the resistance level of 120,000 USD!
What is more worthy of attention is that the 7-day moving average (MA7) has crossed above the 30-day moving average (MA30), forming a 'golden cross' bullish signal. Historical data shows that after this signal appears, Bitcoin's average increase reaches 28%. Combined with the current favorable policies, this round of market may replicate the 2020 bull market script!
4. Must-see for cryptocurrency investors: Three major wealth opportunities
Spot positioning: Gradually build positions below 110,000 USD, aiming towards 125,000-130,000 USD;
Options hedging: Purchase call options with an exercise price of 120,000 USD expiring in November, leveraging to capture policy dividends;
Stablecoin arbitrage: Capital outflows from emerging markets may push USDT premiums higher, with risk-free arbitrage opportunities in over-the-counter trading.
Tap on the profile picture, follow me, and tell me what you think about the current market? Let's chat in the comments! Opportunities and risks coexist in the cryptocurrency market; staying alert and timing is key.
