Yuge's Views on the Impact of September #降息 on the Cryptocurrency Market

Will the cryptocurrency market definitely surge with the interest rate cut in September? Yuge believes that 'outsiders watch the excitement, insiders see the way.'

From a theoretical perspective, if the interest rate cut lands as expected, the stock market, gold, U.S. bonds, and cryptocurrencies are likely to rise, while the U.S. dollar may depreciate. This is a logic that even novice investors understand.

However, whether the interest rate can be cut, and the extent and frequency of the cuts meeting expectations, still depends on three key data sets: Friday's #PCE , September 5's #非农数据 , and September 11's #pci , with the latter two sets having a significant impact on the interest rate cut results.

Even if the rate cut proceeds smoothly, the market may not necessarily welcome a dramatic rise. For such strong positive developments, there is a risk that 'after the good news is realized, the big players cash out and leave.' Over the past two months, the cryptocurrency market has been performing well, and many people expect Bitcoin to break 13000, and $BTC to break 6000 or even 8000, but Yuge maintains a cautiously optimistic attitude towards the subsequent market conditions.

He especially mentioned that if the market appropriately adjusts downwards before the interest rate cut, it would be a good thing, as it could leave more room for a rise after September 19; however, if the market continues to rise, once the benefits of the interest rate cut are fully realized and there are no new positive developments in the short term, short sellers may concentrate their efforts, triggering a decline.

In terms of operational strategy, Yuge recommends focusing on swing trading, avoiding chasing highs or panic selling, and taking profits when available. Investors without strict trading discipline might consider staying in cash and waiting for clear entry signals before acting, as preserving capital is more important than blindly entering the market.