🌕 Gate Square · Creator Incentive Program – Day 10 🌕

‍ #Fed Cuts Rates By 25 Bps#

The Federal Reserve has cut its benchmark interest rate by 25 basis points, bringing the target range to 4.00%–4.25%. This marks the restart of the easing cycle after a pause since December, and it carries important implications for both traditional markets and crypto. Lower interest rates usually increase liquidity, reduce borrowing costs, and encourage more risk-taking across financial markets.

My observations and strategy:

Trading decisions: I increased my Bitcoin and Ethereum positions after the announcement. Historically, crypto tends to benefit from looser monetary conditions, particularly during the early stages of rate cuts.

Short-term strategy: I am adopting a cautious but opportunistic approach. I plan to hold core assets while actively trading volatility in mid-cap tokens. Setting stop-losses remains important, as short-term price swings are common when new policies are announced.

Sectors to watch: I believe DeFi could experience renewed momentum, as cheaper borrowing costs may encourage greater adoption of decentralized lending protocols. In addition, AI-related tokens and infrastructure projects could attract capital as investors search for growth sectors.

Macro outlook: If the Fed continues to cut rates in the coming months, this could mark the beginning of a broader liquidity cycle. That scenario has historically been supportive for both equities and digital assets.

For me, this rate cut is not just a minor policy adjustment—it signals the possibility of a larger trend where monetary easing provides a tailwind for risk assets. The key question now is whether this momentum will sustain or if inflation risks force another pause later.

📌 Event details: https://www.gate.com/campaigns/1953

‍ #Fed Cuts Rates By 25 Bps# #Gate Square Mid Autumn Creator Incentive#