At 10 PM last night, Powell made a public speech. In stark contrast to his earlier tough stance, he was noticeably more gentle this time, releasing dovish signals right from the start, significantly boosting market expectations for a September rate cut. Once the information was released, market sentiment quickly heated up, with BTC and ETH both surging strongly, and ETH even hitting a historical high of $4,887.
Powell's speech is the market's weather vane moving forward, a key factor in determining when the rate cut will take effect. A rate cut means easing, returning liquidity, warming market sentiment, and restoring user confidence. Holding a coin essentially means believing in its future expectations. When the fundamentals provide clear positive signals, the market will inevitably react, and those who were previously hesitant or waiting will gradually enter. Once sentiment picks up, the subsequent market will naturally improve—this is why we must pay attention to fundamental information.
If you are still only focusing on K-lines and technical indicators while trading, it means you are still in the beginner stage. Any indicator must take a backseat in the face of significant fundamental events. Sometimes the market trend looks very healthy, and the K-line pattern is also beautiful, but a sudden event can completely break the existing rhythm, like the recent conflict in the Middle East.
Looking back at the market at that time, you will find that although the non-farm payroll and CPI data were good, geopolitical risks instantly changed the market landscape. Therefore, once the fundamentals send clear signals and provide a clear guide for future trends, it is time to follow decisively. Even if the short-term gains have been substantial, it may just be the beginning; often, larger movements are still ahead.
The signals for a rate cut in September are already quite clear, and even the probability of a 50 basis point cut is rising. The expected number of rate cuts this year has increased from 2 to 3, meaning that the next three months are likely to see consecutive rate cuts. Each round of rate cuts is often accompanied by a market explosion—if you don't believe it, you can review the trends during the rate hike cycle in 2022. Liquidity is continuously returning, and retail investor sentiment is gradually heating up. What we need to do now is to ambush in advance and wait for the market explosion after the rate cut.
Currency Recommendation:
1. BNB
Currently around 889, it is suitable for users with a conservative style and larger capital. Binance's backing is strong, and BNB has been oscillating in the 550-650 range for a long time, with solid bottom support. It has now also broken through previous highs, showing clear upward momentum. In a bull market, it is expected to achieve a market capitalization of 200 billion, with nearly double potential still available.
2. PENDLE
As a quality project in the ETH ecosystem, when the big brother strengthens, the little brother will not be weak. PENDLE has a healthy trend and strong bearish resistance, performing particularly well in a down market, with solid bottom support and strong backing from market makers. Its TVL has exceeded 10 billion, making it a highly potential target for growth in the ETH ecosystem. It is suitable for investors with smaller capital looking for higher volatility. Entry around 4.4 has yielded profits, and those who haven't entered can follow up again.
Other ETH ecosystem altcoins: UNI and ENS have relatively high market capitalizations, stable trends, and are suitable for large funds and conservative users;
SSV, ETHFI, EIGEN: These have lower market capitalizations and greater volatility, suitable for smaller funds willing to seek high returns.
