Review of BTC Trends Before and After Rate Cuts! Experiences and Lessons
I clearly remember the rate cut on September 18 last year. Before that, BTC was fluctuating back and forth, with prices dropping as low as $49,000. On the day of the rate cut, the price shot back up to $61,700. Then the market seemed to have been injected with adrenaline, surging all the way to new highs. By December 18, the day of the second rate cut, the price peaked at $106,500, and then it started to plummet, dropping to a low of $89,000. Although the market rebounded again, peaking around $110,000 on January 20 of the following year, it then completely faltered, experiencing almost three months of fluctuation and decline until it bottomed out around $74,500 on April 7 of this year.
This year is very different: Institutions are entering the market, expectations are leading
The market generally believes that a rate cut in September this year is almost a certainty.
The key point is: this year the market broke historical highs two months before the rate cut! This has not been seen in previous bull markets. Having experienced past bull markets, I know that typically breaking historical peaks, combined with a rate cut cycle, indeed triggers a strong upward trend.
Why did it reach new highs so early this year? I believe the core reason is that institutional funds are entering the market in large amounts. This year is different from previous years; many companies like 'MicroStrategy', and even dozens of institutions, have publicly announced their purchases of cryptocurrencies. These are substantial, real incremental funds driving the market up.
My strategy adjustment: Go with the trend, focus on the leaders
Regardless of whether the September rate cut is at the peak, at least in the nearly two months leading up to the rate cut, the market has a clear and strong upward trend.
My view is: Be bold to go long with heavy positions, seize this rare trending opportunity, and maximize profits.
I have previously shorted those 'junk altcoins' and made some money, but that was in a market with fluctuations and no clear direction.
Recently, my feeling has been very obvious: even shorting those junk coins has been very challenging, often resulting in being countered. This sense of resistance usually only appears when the market breaks new highs and enters a strong trending situation.
I am Xinbi, follow me, supported by a top-tier team, serving only ambitious madmen
