As soon as the Federal Reserve eases, the cryptocurrency market lifts its head! The expectation of an interest rate cut in September soars, and the 'policy tailwind' for Bitcoin is coming!
With rising expectations for rate cuts, the countdown for risk assets to celebrate begins! The U.S. inflation data for July met expectations, and the market instantly became 'dovish'! Traders are betting on an over 80% probability of a rate cut in September, U.S. Treasury yields plummeted, and the dollar nosedived—this is an epic positive for Bitcoin and the cryptocurrency market! Historical patterns show that once the Federal Reserve enters a rate-cutting cycle, the liquidity floodgates open, and Bitcoin, as a 'hedge against inflation + high-risk' leading asset, often erupts first.
A weaker dollar = cryptocurrency market takes off? Key logic breakdown!
A significant drop in the U.S. dollar index (DXY) indicates that global capital will accelerate its escape from 'low-yield dollars' and flow into high-yield assets. As a liquidity-sensitive asset, cryptocurrencies like BTC and ETH may see a surge in foreign capital. Especially with recent continuous inflows into cryptocurrency ETFs, combined with rate cut expectations, the 'Davis double play' market situation is about to ignite!
Short-term caution: 'buy the expectation, sell the fact'? Trading strategy is here!
Although bullish in the medium to long term, it is essential to note: the market may have already priced in the benefits of a rate cut. If BTC breaks through the critical resistance of $65,000 in the short term, consider positioning in batches; if it retests the $60,000 support, it would be a golden opportunity to buy the dip. For altcoins, focus on AI, RWA, and MEME sectors, as these tracks are extremely sensitive to changes in liquidity!
Exclusive warning from Long Ge: Must keep an eye on two major indicators before September!
August non-farm data: If the job market cools down, rate cut expectations will be further fueled;
BTC ETF net inflow: Whether institutions continue to increase their positions will determine the height of the bull market.
If you also want to seize this 'rate cut dividend' but don't know what to buy or when to buy? Follow Long Ge, and let him guide you to profit from this wave of market! #CPI数据来袭 #机构疯抢以太坊