Recently, Federal Reserve Chairman Powell has released strong dovish signals, openly stating that future economic risks have significantly increased expectations for interest rate cuts. This news quickly stirred up global markets, with cryptocurrency assets Bitcoin and Ethereum prices rising in response, and market expectations for a new round of liquidity bull market warming rapidly.
Interest rate cuts mean further easing of dollar liquidity, with large amounts of capital flowing from traditional markets into risk assets. Bitcoin, with its deflationary characteristics, becomes more attractive. However, investors still need to cautiously monitor future inflation and employment data to assess the strength and sustainability of Federal Reserve policies.
Although short-term expectations are optimistic, Trump's intervention in the Federal Reserve still adds uncertainty to the market. Investors need to be prepared for volatility, seizing opportunities while not forgetting risk prevention.
