As soon as Wall Street's rate cut whistle blows, the 'money printer' in the crypto world roars—but this time, will you grab the chance to get on board or be thrown off as retail investors?
Explosive news shocks the global financial market—J.P. Morgan suddenly changes its stance, raising its expectation of Federal Reserve rate cuts from 1 to 3 times by 2025, with the first rate cut anticipated in September!
What impact does a rate cut have on the crypto world?
According to the 'Federal Reserve Watch' tool, traders currently expect a 89.4% chance of a rate cut in September, up from 37.7% last week.
Federal Reserve rate cut = cheaper money = funds frantically seeking high-yield assets = Bitcoin and Ethereum skyrocketing! Why? Because:
Money is losing value: interest rates are low, saving in the bank is meaningless, and large funds will rush into Bitcoin and gold, which are 'anti-inflation' assets.
Institutions are bolder: After the rate cut, Wall Street big shots will have lower borrowing costs and will definitely increase their crypto trading efforts, with ETF buying being more vigorous!
Retail FOMO: Once Bitcoin starts to rise, retail investors will frantically chase higher prices, creating a bull market cycle of 'buy more as it rises'!
Dragon Brother's personal opinion:
This market cycle may be more intense than in 2020! Why? Because now Bitcoin has ETFs, institutional backing, and even U.S. pensions may enter the market. Imagine this: global monetary easing + Trump’s policies relaxed + institutions buying crazily, Bitcoin reaching $150,000 to $200,000 is not a dream!
Operational advice:
Rate cut expectations have already been priced in; the crypto market has risen 8% in the past week, but don’t rush to chase high prices! Dragon Brother gives you a few practical suggestions:
Short-term: Keep a close eye on the September FOMC meeting
The Federal Reserve will hold a meeting on September 19. If Powell clearly states 'three rate cuts this year', Bitcoin may surge; but if he speaks ambiguously, the market may be disappointed and the coin price may retrace. It is recommended to set a stop loss of 5%-8% to prevent being trapped!
Long-term: Pay attention to the resistance level of $120,000
Bitcoin is currently stuck around $115,000; if it breaks through $120,000 with volume, the bull market is confirmed, and you can confidently increase your position; but if it rises and then falls back, it may form a 'false breakout', and you need to run quickly!
The Federal Reserve's rate-cut drama has begun, and the 'water buffalo' market in the crypto world is also on the verge—will you seize this opportunity to get rich, or will you be left behind and lose everything to the market? Follow Dragon Brother, who will teach you how to make money in this market wave!