๐ The Impact of the Federal Reserve's Decision on the Market:
Firstly: Gold (XAU/USD)
๐ธ If the Federal Reserve does not cut interest rates (the closest scenario currently):
โ The dollar will remain strong โ because the yields on it are high.
โ Gold will face downward pressure โ because gold does not yield interest, and when interest rates are high, demand for it decreases.
๐ธ If the Federal Reserve unexpectedly cuts interest rates:
โ The dollar will decline.
โ Gold will rise sharply โ because it is a safe haven in times of currency weakness.
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Secondly: Cryptocurrencies (like BNB and BTC)
๐ธ In case interest rates remain stable:
โ Pressure on cryptocurrencies as investors turn to traditional interest-bearing assets (like bonds).
๐ก Sideways movement or slight decline.
๐ธ In case of an interest rate cut:
โ Significant rise in cryptocurrencies like BNB and BTC.
The reason: Cutting interest rates reduces the yield on the dollar, leading investors to seek alternative assets with higher returns (including cryptocurrencies).
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๐ก Summary for Traders:
Condition Gold BNB / BTC
Interest Rate Stability ๐ป Decline ๐ป or Stability
Interest Rate Cut ๐บ Rise ๐บ Strong Rise
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โ๏ธ Recommendation for Traders:
Follow the results of the Federal Reserve meeting at the end of July (29-30).
Watch for statements from Jerome Powell โ any hint about a cut will lead to a rise in cryptocurrencies.
If the news is about stability: Reduce risk, take profits, and watch the market carefully.
