As the signal flares of traditional finance's interest rate cuts pierce the night sky, the sleeping giant of the crypto market is quietly awakening——but this time, will it choose to go left or right?

Event Interpretation:

Mizuho Bank's latest report points directly to a weak U.S. labor market——not only has job creation shrunk, but wage growth has also regressed to levels seen during the pandemic. This means that the Fed's interest rate cut in September is almost a certainty: starting with 25 basis points, and if next week's inflation data underperforms expectations, it may even drop by 50 basis points! The Fed previously misjudged inflation and unemployment rates, and now it has to bow its head and shift to an easing mode, planning to cut rates from the current 5%+ to 3% before 2026. If a new chairman comes in, it may even plunge to 2%, completely initiating a “money printing mode”.

Long Brother's Viewpoint:

Interest rate cuts = liquidity gates reopen! Traditional funds will accelerate their flow into high-risk assets, and Bitcoin and Ethereum, as “digital gold” and the core of decentralized finance, will undoubtedly become the first choice for hot money. Especially as a sharp drop in interest rates may suppress the dollar's exchange rate, further boosting the demand for cryptocurrency as a store of value. But be wary of short-term fluctuations——if inflation rebounds later, policies may waver and the market is bound to experience severe turbulence.

Key Reminder:

Next week’s U.S. CPI data will be a decisive barometer! If the data is lackluster, expectations for a 50 basis point rate cut will rise, and the crypto market may erupt in a new wave of FOMO. Pay attention to whether BTC can break through its previous high, as well as the rotation opportunities for altcoins.

Want to position yourself in advance but afraid of missing the rhythm? Keep a close watch on the Fed's September meeting movements, and follow Long Brother. I will provide real-time interpretations of policy signals and on-chain capital flows in the village, helping you seize the Alpha opportunities of the interest rate cut cycle! #美联储降息预期