Before each Federal Reserve interest rate cut, the market always plays out the same script: first, a panic-driven crash, then a V-shaped reversal. This is not a coincidence, but a psychological game that Wall Street has been playing for decades.
Why is there always a 'final drop'?
Bears need to create extreme panic to harvest. They spread theories of economic collapse, amplify negative news, causing retail investors to sell at the lowest point. Once panic reaches its peak, institutions start accumulating at the bottom. The crises of 2008 and 2020 were like this; the darkest moments often signify that dawn is near.
The current market is replaying history:
1. The media continues to hype up the risk of recession
2. Retail investors panic sell
3. Institutional funds are secretly flowing into cryptocurrencies
4. Bitcoin consistently holds the $100,000 mark
Three pieces of advice for investors:
1. Don't be controlled by panic
Each crash is an opportunity to test the quality of assets. Major coins often rebound first, while altcoins may sink. Cutting losses now may very well mean selling at the bottom.
2. Prepare a buying list for the dip
Put core assets like BTC and ETH first, and set a good price point for incremental buying. For example, buy more BTC every time it drops by 5%, and focus on accumulating ETH below $4000.
3. Maintain a long-term perspective
The Federal Reserve's interest rate cut cycle usually lasts 2-3 years, and the current volatility is just minor ripples compared to the long-term trend. Historically, Bitcoin has risen over 500% during each rate cut cycle.
Remember a key rule: sharp drops in a bull market often end with a spike rebound. When most people dare not buy the dip, it is actually the best time to enter. What is needed now is not panic, but patience and the courage for contrarian thinking.
