Federal Reserve Chairman Powell's statement last night directly sent a "super dovish" signal to the market.
He said: Global economic risks are continuously increasing, and the Federal Reserve must take preventive measures in advance, with a 25 basis point interest rate cut in September almost certain. More importantly, he referred to the tariffs raising prices as a "one-time shock," just like a needle prick that hurts but won't cause long-term bleeding. This essentially tells the market: Don't be misled by short-term inflation; the pace of easing will not be interrupted.
He also emphasized that the labor market is not tight, which is actually providing a reason for interest rate cuts—employment is not overheating, and inflation is only temporary, so a rate cut is logical.
If we compare it to 2019, at that time the Federal Reserve also first signaled dovishness, and then cut rates three times in a row over three months; Bitcoin surged from $4,000 to $14,000 in one go. This scene may be replaying.
The difference now is that the background is more complex: the scale of global negative interest rate bonds has already exceeded $17 trillion, and capital is desperately seeking an outlet, while Powell mentioned that "employment faces downside risks," which further indicates that the internal models of the Federal Reserve have already signaled red.
The September FOMC meeting is likely to be the starting point of a new wave of liquidity surge.
As for whether there will be another "rate cut followed by a surge" this time? The answer is already in the air of the cryptocurrency circle.
In the cryptocurrency world, what matters is not hard work, but cognition!!!
