No Hope for Interest Rate Cuts in 2025? The Crypto and Stock Markets May Face a 'Storm' Baptism

In the crypto market, many investors are eagerly anticipating the arrival of interest rate cuts. After all, once interest rates are cut, liquidity in the market will significantly increase, and the borrowing costs for businesses and individuals will decrease accordingly. This is like opening the faucet of funds, which will encourage more money to flow into the high-risk, high-reward cryptocurrency market, thereby strongly driving up the prices. However, the financial outlook for 2025 is not optimistic, with even the possibility that not a single rate cut will occur.

Looking back at the Trump administration, the onset of the trade war became a turning point in the global economic landscape. His continuous imposition of tariffs not only severely disrupted the global trade order, throwing trade relations between countries into chaos, but also dealt a heavy blow to the U.S. economy itself. In this unstable economic environment, the many uncertainties brought about by trade frictions have clearly slowed global economic growth. This series of chain reactions has also placed enormous pressure on the formulation of monetary policy by the Federal Reserve. To some extent, the economic situation at that time was undoubtedly forcing the Federal Reserve to use interest rate cuts to rescue the sluggish market.

However, the current decision-makers at the Federal Reserve may choose to be 'tough' this time. Not only is it highly likely that no interest rate cuts will be implemented this year, but even the two rate cuts that the market generally expects may ultimately turn out to be illusory. If the comments made by the Federal Reserve Chairman this Thursday lean towards a hawkish stance, signaling unfavorable conditions for rate cuts, then both the crypto market and the stock market will undoubtedly suffer a 'storm' shock. At that time, the market will experience drastic fluctuations, and investors' assets are likely to shrink significantly. Panic sentiment will spread rapidly in the market like a virus, making the entire investment environment increasingly tense.

In light of this, investors must be adequately prepared psychologically in advance. In this unpredictable market environment, it is essential to closely monitor every dynamic change in the market and adjust their investment strategies timely and reasonably based on actual conditions. Only in this way can they minimize risks and protect their assets as much as possible in the ever-changing financial market. #降息期待