The Federal Reserve's December interest rate cut vote is up in the air! Cook, pressured by Trump, becomes the "deciding factor". How should crypto players operate next week?

Recently, there has been intense debate within the Federal Reserve about whether to cut interest rates in December! Analysts reveal that Chairman Powell wants to rally votes in favor of the rate cut, and even if he gets the three governors appointed by Trump to support him, he will only have 6 votes, still 1 vote short of a majority.

At this moment, the governor appointed by Biden, Cook, has become the key — she is closely monitoring the job market and remains tight-lipped about the rate cut. Even more magically, Trump has wanted to remove her since last fall, and the Supreme Court will review this matter in January, so her vote directly influences the crypto market!

What does the interest rate cut have to do with the crypto market? The flow of capital is the key!

In simple terms, a Federal Reserve interest rate cut means there are more dollars in the market and the cost of borrowing decreases. During the 2020 rate-cutting cycle, $BTC soared from over $7,000 to nearly $60,000, reflecting the influx of global capital into the crypto market! If a rate cut is realized now, funds from the stock and bond markets are likely to flow into the crypto space, especially from those "smart money" investors who are bullish on BTC and ETH in the long term.

But the problem lies in Cook's uncertain vote! If she votes against, the interest rate cut may be delayed or even reduced, leading to market turbulence; if she votes in favor, the crypto market will take off immediately. Just like before several interest rate hikes in 2023, BTC fell first as a show of respect, but rebounded after the rate hikes — when the news is uncertain, "sentiment" is crazier than data!

How should crypto players respond? Here are 3 practical strategies!

Keep an eye on the results of the December Federal Reserve meeting: check the central bank announcement for specific dates. If there are rumors of a beneficial rate cut ahead of time, do not chase BTC when it rises, wait for a pullback to enter in batches; if it’s negative news, a sharp drop to the key support level of 82,000 may allow for small positions to test the waters.

Currently, Cook's "key vote" is like "Schrödinger's cat"; the market will certainly fluctuate back and forth before the vote. Will there be early leaks from Federal Reserve officials' speeches next Monday? What long-term impact will the political games behind Cook have on the crypto market?

Keep up with the rhythm but stay calm! Follow Fuqi to get the latest movements of smart money in real time! Follow Fuqi to participate in every attack by Fuqi villagers! Fuqi will announce specific entry times and real-time news in the village daily! #美国非农数据超预期