The old-timers in the crypto circle are well aware that every time the Federal Reserve lowers interest rates, the market hits the mute button and falls into silence, and then... often a storm brews.
Today's market is so boring it could make one's eyelids fight each other. Bitcoin is just sitting there, motionless, and Ethereum seems to be asleep as well. The mainstream coins are collectively 'playing dead', with such small fluctuations that even short-term traders can't muster the interest to operate. Don't mention you; even I almost dozed off in this calm. But don't panic, this is definitely not a sign that the market is hopeless. On the contrary, this is the calmest night before the storm.
Why do I say this? Because from institutions to large investors, even the usually loud retail investors are now doing the same thing: holding cash and waiting for a signal. What signal? The signal gun for the Federal Reserve's interest rate cut. Why is a rate cut the "adrenaline" for the crypto market?
Simply put, a rate cut by the Federal Reserve means lower interest on bank deposits and cheaper borrowing costs.
What will this trigger? Assets such as stocks, commodities, and cryptocurrencies will benefit from this. This is the liquidity effect, just like turning on a tap, water will always flow to the lowest point. And the crypto circle is that golden depression that has not yet been fully irrigated by capital.
Why is the market so quiet now?
Because everyone's consensus is too strong! Both bulls and bears are cautious and dare not act rashly. Bulls worry about a final drop in the market before the rate cut, while bears fear a violent rise in the market after the rate cut, catching them off guard.
The result is that everyone chooses to remain inactive and lie flat to observe. But this precisely foreshadows that once the signal gun for interest rate cuts is fired, the consensus will be validated, and the previously suppressed energy will erupt instantly. The longer the sideways movement lasts, the clearer the subsequent direction will be, and the more intense the fluctuations will become.
Xuánjī quietly tells you: If you find the market boring right now, or even have thoughts of cutting losses and leaving, you must remember this sentence: Bull markets often arise from despair, rise amid hesitation, and end in madness. The current hesitation period is precisely the most suitable important window for accumulating chips.
I am Xuánjī, having crawled through this market for many years, I have stepped into more pits than you have walked paths. Follow me to avoid ten years of detours — in the crypto market, following the right person is 100 times more important than working hard aimlessly! If you don't know how to step in, feel free to find me in the village; I'm on guard for my fans 24 hours a day!#美联储降息预期升温
