Last warning! An epic market in the crypto world is coming in October! Either achieve financial freedom or watch others do so!
The door to interest rate cuts by the Federal Reserve has been opened, and the market is voting with real money for the 'dovish tone'!
After Powell's speech, the market's expectation for a September rate cut by the Federal Reserve soared to 91.1%, meaning 9 out of 10 people are betting that the central bank will act to inject liquidity.
In simple terms: the probability of no change in interest rates is only 8.9%, which can almost be ignored.
Even the probability of a continuous rate cut of 50 basis points in October is close to half (46.8%), indicating that the market believes this is not a one-time operation but the beginning of a new easing cycle.
Behind this rise in expectations is actually a dual driving force of weak economic data and slowing inflation.
This time, Powell did not 'play Tai Chi', but instead hinted that policies need to be flexibly adjusted, which is equivalent to giving the market a reassurance.
For the crypto world, expectations of rate cuts are fuel — once the liquidity gates are opened, some funds will inevitably flow into high-risk assets.
Referring to the rate cut cycle in 2020, Bitcoin skyrocketed from $7,000 to $60,000 that year; although history won't simply repeat itself, the logic is similar: with more cheap money, speculative demand will rise.
However, in the short term, be wary of 'buying the expectation and selling the fact': if there is indeed a 25 basis point rate cut in September, it may turn from a favorable event to a negative one, leading to increased volatility.
A more prudent strategy is to focus on the medium-to-long-term capital flow after the rate cut, especially the capital-raising ability of institutional-level compliant products.
When the expectation of a rate cut fermented last October, Bitcoin rose 27% in a week, but after the official rate cut, it actually retraced by 15%.
This shows that the market will price in advance, but the medium-to-long-term trend still depends on the actual scale of liquidity injection.
If the Federal Reserve truly starts the 'rate cut train', will you choose to go all in on spot trading or lay out leveraged derivatives? #杰克逊霍尔会议
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