On April 25, when the Federal Reserve signaled a rate cut, the financial markets went straight "crazy"!
The three major U.S. stock indices have been rising for three consecutive days, and commodities like gold and crude oil have also seen price increases, all because the Federal Reserve's monetary policy has changed!
Why the sudden rate cut? There are mainly two reasons: on one hand, the U.S. job market has weakened, and the growth rate has slowed down.
On the other hand, inflationary pressure has significantly decreased. Previously, the Federal Reserve maintained high interest rates for 14 consecutive months to curb inflation, and now the inflation rate has dropped from a high of 9.1% in September 2022
to 2.5%, almost reaching the 2% policy target!
Once the rate cut was implemented, the market reacted extremely lively:
For businesses, the cost of borrowing has decreased, and profit expectations have soared.
Especially for tech stocks and companies looking to expand, they are simply the "chosen ones"!
Gold has become more attractive due to the weakening dollar,
with prices breaking through 3300; crude oil prices have also risen nearly 1% because of expectations of increased demand.
Ultimately, a rate cut stimulates the economy by lowering the cost of capital,
and the overall optimistic sentiment in the market has been ignited all at once!
To make money in cryptocurrency trading, remember one word: wait!
Only make a move when the price drops.
Many people buy and the price drops; chasing highs can easily get you trapped. Enter the market again when the price has dropped; the sharper and longer the drop, the safer it is!
Six practical cases of "waiting"
1️⃣ Don't panic during a big drop: For example, Bitcoin once dropped 20% in a short time. Don’t rush to go all in; first enter with 30% of your funds, and if it continues to drop, you can add more later.
2️⃣ Take profits: If Dogecoin suddenly surges 30% one day, don’t be greedy! Take half of your profits first, and sell the rest later based on the situation.
3️⃣ Spot the trend: When Bitcoin's 5-day moving average crosses above the 10-day moving average and the price stays above the averages, it indicates a clear upward trend.
4️⃣ Volume is key: XRP usually has a daily trading volume of $1 billion, but if it suddenly spikes to $3 billion one day, and the price rises as well, it’s safer to follow in.
5️⃣ Seize the moment: After Ethereum consolidates for a month, if it suddenly breaks out above the range, enter decisively; or if it falls below support, cut your losses in time.
6️⃣ Sell ahead of good news: Before a coin announces its listing on a major exchange, sell in advance; there have been instances where a coin plummeted 40% after good news was announced!
Final reminder: Cryptocurrency trading is unregulated and the risks are extremely high! Don’t go all in; preserving your principal is the way to go! #以太坊的未来
Boys and girls! SOL has been too strong this time!
It has surged from 105 all the way to 150. I have already taken profits on my long positions, but I still have high hopes for the future trend!
Now the pullback is an opportunity; I'm preparing to jump back in and go long!
The overall trend is completely upward, and the bullish momentum cannot be stopped!
In the short term, I'm looking at 155, and for the medium term, it's heading straight for 165! Don't short easily; just follow the bulls and enjoy the gains!