Guys, Trump has new moves! He directly called out the Federal Reserve, demanding an immediate interest rate cut, citing the need to 'respond to economic growth.' Even more surprising, the US GDP data for the second quarter has just been released, and the results far exceeded expectations! This operation has caused a stir in the crypto market!
What’s the connection here? Aiers is here to highlight the key points!
Interest Rate Cut = More Dollars?
If the Federal Reserve really listens to the suggestion to cut interest rates, the liquidity of dollars in the market will increase. Where will the extra money flow? A portion is likely to surge into the crypto market! After all, assets like Bitcoin and Ethereum are often seen as a 'reservoir' during monetary easing; once liquidity increases, the market tends to become volatile!
GDP Exceeds Expectations, Will an Interest Rate Cut Still Happen?
Here lies a contradiction! A good GDP performance indicates that the economy is quite resilient, and the Federal Reserve may feel 'there’s no rush to cut rates.' But with Trump applying pressure, political pressure arises, and now the market is wildly speculating: does the Federal Reserve listen to economic data or the President?
Impact on the Crypto Market: Cautious in the Short Term, Favorable in the Long Term?
In the short term, the market may be in a wait-and-see state since the interest rate cut hasn't been confirmed, and large funds may hesitate to act. However, in the long term, if a rate cut is indeed implemented, expectations of dollar depreciation will heat up, and assets like Bitcoin, which are considered to have 'anti-inflation' properties, may attract a large influx of funds! Especially now that institutions and ETFs are eyeing the market, once the funding floodgates open, opportunities may outweigh risks!
Xiao Wan reminds: Don’t get too excited, keep an eye on these two steps!
Federal Reserve's Attitude: The August Federal Reserve meeting is crucial! If there are hints of a rate cut in the meeting, then decisively pay attention to the trends of Bitcoin and Ethereum!
Capital Flow: Recently, keep an eye on the US Dollar Index and US Treasury yields; once the dollar weakens, it may signal the start of the crypto market!
Lastly, let’s be honest:
Trump’s operation appears to be against the Federal Reserve, but secretly it may be paving the way for the election! Regardless of how he stirs things up, as long as the expectations for a rate cut rise, the crypto market will definitely not escape the 'true fragrance law'! Guys, follow Xiao Wan's latest updates, and I will break it down for you at the first moment, guiding you to grasp the opportunities without getting lost! $BTC $ETH $XRP #gdp
