When the Fed presses the "rate cut + halt balance sheet reduction" dual buttons, the faucet of global capital is about to loosen again - crypto world frens, don't rush to call a bull, wait for the right direction before making a move!



This week, the Fed is likely to unleash a "combination attack": first, directly lowering interest rates by 25 basis points, and second, signaling continued easing in the future, possibly even ending "balance sheet reduction" ahead of schedule. These two moves combined will likely weaken the dollar and lower U.S. Treasury yields, providing a boost to global risk assets and potentially leading to a wave of emotional recovery.

My opinion and retail trading suggestions:

๐Ÿ“ˆ Is the crypto world favorable in the short term?
The loosening of US dollar liquidity is usually a catalyst for high-risk assets like Bitcoin, especially if the Fed releases clear easing signals, BTC is expected to rise. However, it is important to note that the crypto world is still digesting previous selling pressure, and blindly chasing highs is not advisable.

๐Ÿ‘€ Focus on two signals:
โ‘  Does Powell's speech convey "super dovish" signals?
โ‘ก Timeline for the end of the balance sheet reduction - if it is earlier than expected, the crypto market may start early.

๐Ÿ›  How should retail investors operate?
Don't be swayed by short-term fluctuations! If the Fed turns dovish and BTC rises rapidly, be wary of the pullback risk from "good news fully priced in," especially for high-leverage players. Mid to long-term investors may consider dollar-cost averaging, provided that you can withstand the volatility.

Is the Fed's dual operation this time a "timely rain" for the crypto world, or a new round of "smoke bomb"?
Welcome to share your thoughts in the comments section!
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