With Trump back in power, the direction of economic policy undoubtedly has a profound impact on the market. Interest rates and inflation will become the focal points of future market games. The following discussion will explore the future we are about to face from the perspectives of interest rate cuts and inflation, cryptocurrency, and market reflexivity, allowing for layered consumption~

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Interest Rate Cuts and Inflation: The Game of Expectations and Reality

Traditionally, interest rate cuts are tools to stimulate economic growth, but in the current economic environment, the market's response to interest rate cuts has become complicated.

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In traditional views, interest rate cuts usually lower borrowing costs, stimulate investment and consumption, thereby driving the stock market up.

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However, against a backdrop of high inflation, interest rate cuts may lead to excessive money supply, thereby exacerbating inflationary pressures.

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Now, the market no longer simply sees interest rate cuts as a positive signal for economic stimulation, but rather as a potential negative factor that may exacerbate inflation.

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Market Reflexivity Shift: A Dramatic Change in Expectations (The Future of BTC and US Stocks)

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If the Federal Reserve decides to stop interest rate cuts, and the market reacts positively (the stock market does not fall, but even rises), this may indicate a shift from reliance on interest rate cuts to confidence in robust economic growth.

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At this point, the market may enter a recovery phase, with US stocks expected to gradually rebound and eventually reach new highs, while the cryptocurrency market, free from external adverse factors, will also welcome the anticipated festive season.