Zhou Yanling: What impact will the September 19th Federal Reserve interest rate decision have on the cryptocurrency circle? How should we respond?

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周彦灵
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10 months ago
  • Zhou Yanling: What impact will the September 19th Fed interest rate decision have on the currency circle? How should we respond?

In the late night tonight, which is early on September 19th, the Fed interest rate decision will be announced at 2 am. After talking about the rate cut for so long, will it be realized this time? The market has been expecting a 25 basis point rate cut, and the currency price has been on a temporary high recently, seemingly confirming the Fed's rate cut. So, now that the Fed interest rate decision is coming, how should we respond to the future currency circle operations?

First, you need to understand how the interest rate decision affects our currency circle operations. Because the currency price is linked to the US dollar, and the interest rate decision seriously affects the future trend of the US dollar, naturally the currency circle will also be affected by the fluctuations. If the Fed ultimately chooses to cut interest rates by 25 basis points, the market may react quickly, causing the US dollar to rebound. But if the Fed, as expected by the market, is dovish, cutting interest rates by 50 basis points and signaling more future rate cuts, the US dollar will further weaken, pushing the currency price to rise again, and then 65,000 will be easily achievable. Although the market expects the Fed to cut interest rates, the magnitude and subsequent policy guidance still have uncertainties. If the rate cut is only 25 basis points, it may suppress the short-term trend of Bitcoin, and investors will adopt a wait-and-see attitude. If the Fed's policy tends to be cautious, the demand for Bitcoin as a safe haven may weaken, leading to a brief selling wave in the market. If the Fed ultimately takes a substantial rate cut and signals further easing in the future, Bitcoin will benefit from the continued weakening of the US dollar, directly driving the currency price to rise sharply. At the same time, global economic uncertainty and geopolitical risks will continue to provide long-term support for Bitcoin's safe-haven demand.

In summary: Nothing is absolute, especially in terms of news. Always remember not to chase after rises and falls. This is the best response strategy at present. Although Bitcoin has been rising recently due to the support of rate cut expectations, once the news meets market expectations, the positive impact will be realized, and the trend is likely to rise and then fall. Unless the rate cut exceeds expectations, and the Fed's subsequent remarks on this year's rate cut space and frequency also exceed market expectations, then the currency price will truly begin to rise. Everything still needs to wait for the dust to settle, and the market will naturally give direction. During this time, market fluctuations will be relatively large. The most important point that Yanling wants to emphasize, and what I often nag everyone about, is not to blindly chase after rises and falls. Be prepared for risk control in all operations first.

This article is exclusively authored and shared by senior analyst Zhou Yanling (WeChat public account: Zhou Yanling). The author has been engaged in financial market investment research for more than ten years, mainly analyzing and guiding BTC, ETH, DOT, DOGE, LTC, FIL, EOS, XRP, BCH, ETC, BSV and other currency circle contract/spot operations. If you need to understand more real-time community guidance, de-risking consultations, and learn about trading skills, you can follow the teacher's public account: Zhou Yanling to find the teacher.

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