📉【The Federal Reserve is going to cut interest rates, how will Bitcoin and Ethereum move?】
Brothers, this Wednesday's Federal Reserve meeting is bound to be another storm in the crypto world. The market is almost certain now — a 25 basis point cut. The question is, is this good or bad for the crypto space?
Let's look at history first. Last time after the September rate cut, Bitcoin surged 1% directly, and ETH followed suit, but the good times didn't last long; three days of heat passed, and it began to pull back. Why? A typical case of "good news priced in." It was the same in 2019 and 2020 — hype before the news, a dump after the news, and the market script has hardly changed.
And now? Bitcoin just hit a new high of $126,000, and the expectation of a rate cut has long been priced in. If it is really just 25 basis points, then I tell you, it is very likely to stage a repeat of the "news lands, good news priced out" drama. At that time, the main force will casually wash the positions, dump some panic chips, and then buy back at a lower level.
But what if Powell suddenly decides on a 50 basis point cut? That would be different — not only is it a signal of liquidity, but it is also the rallying cry for risk assets. BTC and ETH could surge again. But brothers, don’t let temporary excitement cloud your judgment — if it rises too fast, it will also drop quickly.
My advice is simple:
Short term, keep a close watch on Powell's speech;
Medium term, don’t be scared off by pullbacks;
Long term, the interest rate cut cycle is a "hotbed" for the crypto market.
Maintain your positions, protect your profits, and don’t be swayed by emotions — those who really make big money are never the ones who chase highs and sell lows. Following the right people @我是肖姐本肖 is the way to go.
— Crypto Sister Xiao
