."Fed rate hike = crypto world nightmare?"

"Interest rate hikes are not a lifesaver: Understanding the logic behind price fluctuations!"

Please read carefully, it directly affects your account balance (there is a strategy from Brother Qiang at the end)

Brothers, now the whole network is saying that the Fed is going to cut interest rates on September 19, and this is almost a done deal.

Many people are excited, and some even take out loans to gather money, preparing to go all in on that day, betting on a "bull market explosion."

Brother Qiang wants to share my views with everyone: On the surface, the logic indeed makes sense: lowering interest rates means increasing liquidity, money becomes cheaper, and liquidity becomes more abundant. When money flows out, the stock market is expected to rise, housing prices are expected to rise, the bond market may fall, gold may retreat, and the crypto world will naturally rise. At that time, it will be like a global chorus, with everyone shouting "rise, rise, rise," as if everyone can earn a fortune.

But you really have to think calmly: everyone is making money, where is this money coming from? The crypto world is no different from a casino; at its core, it is a zero-sum game, what you earn is what others lose, except for the exchanges that make money regardless. So the question arises, if all retail investors around the world rush in to gamble, will the last buyer be the big players? Clearly not.

Don't forget that before the interest rate cut, the market had already surged significantly. There are two types of people in the market that the main players find most troublesome:
1. Retail investors who made a big profit in the early stage - as long as it rises a little more, they will cash out and sell to secure their gains.
2. Retail investors who were previously deeply trapped - finally waiting to break free, they will also be eager to run away.

As these two types of people increase, if the main players want to push higher, they will have to spend more cost, but the main players will never do such thankless work. So what to do? The simplest method is to crash the market, take back the profits first, cut off the retail investors who chase the highs, let the market become light again, and then start the next round of market.

Therefore, many people believe that interest rate cuts are a great positive, but historical experience tells us that good news often gets priced in early, and when the actual news is released, it can easily become an excuse for a "market crash." The trends over the past decade are a clear testament to this — the day of the interest rate cut is often not the starting point for takeoff, but rather the moment for harvesting.

Of course, this doesn't mean that the bull market is over. In general, we are still likely in the middle of the bull market, far from the final frenzy stage. However, regarding the interest rate cut in September, it is more likely to be a carefully designed shakeout opportunity by the main players. Once this shakeout ends and the market is clean, the second half of the bull market will truly arrive. At that time, following the trend will present greater and more comfortable opportunities to make money.

Provide important predictions and strategies in a down-to-earth manner‼️

Don't focus on getting rich on the day of interest rate cuts; what the main players like most is for retail investors to rush in blindly. In the short term, it is likely to be a round of selling off to wash out positions, but the bull market is far from over. Be patient, wait for the washout to finish before getting in, so you can follow the main players and enjoy the big profits in the second half of the bull market.

Qiang Ge focuses on market trend analysis and information sharing.

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