Just now, Trump dropped another bomb! The former President and presidential candidate directly 'calls out' the Federal Reserve in a recent interview: 'Interest rates must be cut to 1%-2%'! Even more explosive is his rare concession: 'I might not fire Powell'. Once the news broke, the financial world was in an uproar, and the old-timers in the crypto world couldn't sit still—are interest rate cuts really about to accelerate?
What’s the connection between the crypto world and interest rate cuts? Let the tycoon explain it to you:
Interest rate = cost of capital: Currently, the US interest rate is 5.5%, borrowing is expensive, and saving is attractive; large funds are reluctant to move recklessly.
If it really drops to 1%-2%: borrowing costs will plummet! Bank interest will be almost negligible, and massive amounts of dollars will frantically seek high-yield opportunities—Bitcoin, Ethereum, and other crypto assets are super reservoirs!
History doesn’t lie: In 2020, when the Federal Reserve cut interest rates to 0, Bitcoin subsequently soared from $7,000 all the way to $69,000! Rising tides lift all boats, which is a hard truth.
Why is Trump so eager to call for interest rate cuts? The truth is here!
Election trump card: In the final battle of the US election, Trump wants to showcase economic performance! Interest rate cuts can stimulate the stock market, reduce mortgage and auto loans, leading to more money in the hands of the common people, making them happier when voting.
Giving Biden 'eye drops': The current high interest rates are causing prices to remain high (inflation), and the public is voicing their grievances. Trump is blaming the Federal Reserve: 'If you don’t cut rates, you’re helping Biden ruin the economy!'
What should people in the crypto world do? Remember these 3 golden rules:
1. Keep a close eye on the Federal Reserve, but don’t bet on an 'immediate cut':
Trump may shout loudly, but the Federal Reserve may not necessarily comply! Powell is the one at the helm. If inflation cools and the probability of interest rate cuts skyrockets, that will be the starting gun for a bull market!
2. Batch layout, don’t wait for 'water to come before digging the channel':
If BTC/ETH suddenly plummets (for example, the stock market crashes or a black swan event), decisively invest to buy the dip. Remember: when expectations of interest rate cuts rise, institutions often lay in wait six months in advance; by the time you see the news, half the meat is already eaten!
3. Keep your bullets ready, beware of 'verbal reversals':
Trump is best at creating volatility! He may call for interest rate cuts today, but tomorrow he might criticize Bitcoin. Don’t go all in; keep 30% cash on hand, in case he 'changes his mind' and triggers market panic, you still have the opportunity to buy the dip!
Trump's loud voice is like pushing 'Federal Reserve interest rate cuts' to global trending! Regardless of when it ultimately happens, easing expectations have been reignited. For the crypto world, the funding gates are starting to loosen; rather than waiting for the wind, it's better to check the ammunition stock now—opportunities are always reserved for those with a plan! #特朗普施压鲍威尔
Trump personally ‘opens the floodgates’ for the crypto world! But 90% of people will fall into these 3 fatal traps! Follow to join the group! Real-time sharing of first-hand information and in-depth analysis, precise trading point tips, and keeping up with the latest in the crypto world!
