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At 3 a.m. on December 10, the Federal Reserve is about to shake things up again.
This time, Powell cut interest rates by 0.25%, and the market immediately split into several camps: the Nasdaq went straight into celebration, the US Dollar Index started to weaken again, and Bitcoin is gearing up for a rally. Gold didn't sit idle either, surging on the back of rate cut expectations.
Interestingly, there are still dissenting voices within the Fed. Hawkish representative Michelle Bowman is clearly against further rate cuts, worried that inflation hasn't been fully tamed yet. But Powell doesn't seem to care much about this noise—after all, with Trump returning to office next year, policy direction will probably depend on what the White House tweets.
On the crypto side, traders are already prepared. Some are staying up late to watch the live stream, while others have set stop-loss orders in advance and gone to bed. So, are rate cuts bullish or bearish for crypto? In the short term, it could pump prices, but a weaker dollar might also trigger portfolio reallocations.
Bitcoin, XRP, and some altcoins are bound to see a lot of volatility these days. Are you planning to follow the policy rhythm and trade the swings, or just lie low and wait for the storm to pass?
The decision at 3 a.m. could determine the market trend for the next few weeks.