Powell may hint at a hawkish rate cut, potentially leading to a 15% correction?

Federal Reserve Chairman Powell recently dropped a powerful signal: the originally expected "dovish" rate cut may shift to a "hawkish" one! This shift has Wall Street in an uproar, with many institutions predicting a potential 15% correction in the US stock market this fall! As a seasoned cryptocurrency investor, I'd like to explain the underlying dynamics today!

What is a "hawkish rate cut"?

Simply put: while the Fed will cut rates, its stance will be tougher than expected! The number of rate cuts may be reduced, or the magnitude may be smaller. This "loose on the outside, tight on the inside" approach will shift the market's expectations of a "flooding" policy into a "steady stream," directly disrupting investors' capital allocation.

Why is the US stock market experiencing a 15% correction?

Expectation Gap: The market had originally bet on aggressive rate cuts, but now finds it may be a "squeeze," prompting investors to vote with their feet.

Valuation Pressure: US stock valuations are currently at historically high levels, and any slight disturbance could trigger profit-taking.

Capital Shift: When volatility in traditional markets intensifies, some funds may flow into emerging assets such as cryptocurrencies.

Potential Impact on the Cryptocurrency Market:

Although the crypto market and US stocks are not completely synchronized, the interconnected nature of capital flows cannot be ignored.

A pullback in US stocks could attract more funds seeking safe-haven assets.

However, we should also be wary of the ripple effects of declining global risk appetite.

The flow of funds through traditional channels such as Bitcoin ETFs warrants continued monitoring.

Tege's Advice:

Closely monitor the Federal Reserve's September interest rate meeting.

Don't blindly chase gains and sell losses; manage your positions effectively.

Watch for divergences between mainstream assets like BTC/ETH and US stocks.

Always remember: Opportunities arise from declines, and risks arise from increases.

There are no absolutes in the investment market; maintaining a rational mindset is paramount! Whether in the stock market or the cryptocurrency market, risk management is always more important than returns!

Tege's scythe is swifter than a dog dealer's! Follow me and I will teach you how to counter the market! #鲍威尔发言 #加密市场回调