Don't just look at the interest rate cuts! What should people in the cryptocurrency world understand about the Fed's recent actions?
The Fed's big interest rate cut drama this year has just concluded its final act, with a reduction of 25 basis points. This year, there have been a total of three cuts, amounting to 75 basis points.
Many newcomers see the interest rate cuts and think that prices will soar, rushing in. But I tell you, this time the market reaction has been very muted. Why? Because this was already anticipated by everyone, and the good news has long been priced in. This is called "What happens when good news is fully digested? Think about it."
What direct impact does this have on our cryptocurrency market? In the short term, the impact is minimal; it will still fluctuate as it should, so don’t expect a single piece of news to send the bull market flying. But in the long term, the overall trend of declining interest rates hasn’t changed, which means the cost of capital is decreasing, providing underlying support for the entire risk market, including our cryptocurrency market.
What should retail investors do now? Absolutely do not chase highs and cut losses, getting swept up by this "old news". The core is still to hold onto your mainstream coins, keep a firm grip on Bitcoin and Ethereum. The market at this position needs time to grind, and what you need more is patience.
Remember my words: Big market trends rely on cycles, not on a single interest rate cut. When everyone is not paying much attention to these news pieces, it is often the best time to slowly position yourself. Don’t panic when it drops, and don’t get carried away when it rises.
In the market, the most important thing is not to predict every wave, but to ensure that you are always on the boat. The tide of liquidity will eventually lift all real value vessels. Follow Hongcai, and participate in every attack from Hongcai! Hongcai will announce the specific entry times and real-time news daily at Caishen's home! #加密市场观察


