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The Federal Reserve just announced a 25 basis point rate cut, bringing the target range to 3.50%-3.75%.
As soon as the news was released, Bitcoin instantly surged to $93,000, and Ethereum also broke through $3,400. Market sentiment was instantly ignited.
But the good times didn't last long.
Not long after, it started to pull back, with Bitcoin falling back to around $90,000, and Ethereum dropping to $3,214. This rollercoaster ride has been a bit dizzying.
Honestly, this result isn't surprising. A 25 basis point change isn't a large move, and the market had already anticipated it, making it a "expected but not surprising" scenario. Prices can't rise much further, nor fall sharply.
Now, the real focus should be on the Bank of Japan. Their monetary policy adjustments are the potential variables that could stir the market next. The Fed's move is like the final shoe dropping, but the shoe on the Japanese side is still hanging.
In the short term, the market may continue to fluctuate within this range as traders digest the sentiment.
the real sauce is what japan does next tbh. that's the wildcard ingredient we need to watch.
The 25bp cut by the Federal Reserve is the same as no cut at all; the Bank of Japan is the real troublemaker.
Riding the roller coaster all day just to return to the starting point, it's hilarious.
The benefits of interest rate cuts have been fully priced in, indicating that the fundamentals remain unchanged.
It's more interesting when the Bank of Japan's move actually materializes; right now, it's just a game of news speculation.
This reaction is excessive; it seems no one truly believes this rate cut can support anything.