The Federal Reserve admits defeat! Interest rate cuts shock the market, should crypto enthusiasts celebrate or stay calm?
The Federal Reserve's meeting minutes exploded at midnight!
Three key points to set the tone for the market: a unanimous vote for a 25 basis point rate cut, the economy is visibly cooling, yet inflation is still holding on. Today, we won't beat around the bush; let's dissect this operation and discuss how our crypto brothers should respond.
1. The Federal Reserve's softening signals are full throttle; they can't even hold back the formalities anymore.
Previously, they were adamant that the labor market was stable, but this time they directly changed their tune, stating that job growth is visibly slowing.
This isn't just a policy adjustment; it's clearly an acknowledgment that the economy can't hold up anymore, and they can't even maintain their last shred of dignity. The attitude of universal surrender is laid bare.
2. Inflation hits back in a dramatic fashion; it’s both awkward and very real.
On one hand, they ease up by cutting rates and injecting liquidity, trying to boost the market. On the other hand, they stubbornly insist that inflation is still high, fearing accusations of neglecting prices.
This operation, wanting to save the market while preserving reputation, resembles a conflicted party wanting it all, leaving many old players bewildered.
3. Internal divisions come to the forefront; the rhythm of rate cuts is a gamble.
Some believe a sharp 50 basis point cut is necessary to extinguish the fire, while others worry that cutting too quickly might cause trouble. In the end, most agree that cuts will continue this year.
This indicates that the Federal Reserve itself isn't sure of its direction; the uncertainty of future policies is greater than expected.
Crypto enthusiasts shouldn't rush to shout that a bull market is here! Rate cuts are a painkiller, not a lifesaver. In the short term, as liquidity expectations rise, Bitcoin might surge to previous highs, and the market could be lively for a few days.
But don’t forget, the root of the economic illness hasn’t been removed, and the inflation bomb is still ticking. If you mistakenly treat the short-term market as a long-term bull market, it's easy to chase highs and fall into traps.
The market always follows the latest news! Follow Xing Ge, whether the market suddenly plummets, major policy changes occur, or new opportunities arise, I guarantee to alert you at the first moment to jump on board or hedge!
