The probability of a 83.6% interest rate cut in September is coming. will Bitcoin definitely soar? Rate cuts ≠ increase? Analysis of risks VS returns after interest rate cuts!
Federal Reserve Chairman Powell hinted on August 22 that the reason for a rate cut was sufficient, with an 83.6% chance of a 25 basis point cut in September, which is regarded as a "preventive rate cut." Historical interest rate cut cycles (1990-1992, 1995-1998, 2019-2021 are bull market periods; 2001-2003, 2007-2009 are accompanied by market decline) show that interest rate cuts do not necessarily lead to asset increases, but need to be combined with macro background (such as recession or preventive operations). The current environment is similar to the preventive interest rate cuts in 2010, and economic risks (soft labor market, geopolitical) are controllable, which may drive risky assets to strengthen. The crypto market faces favorable policies (stable coin compliance, corporate allocation trends, and ETF institutions entering the market), and Bitcoin's dominance dropped from 65% in May to 59% in August. The total market value of altcoins increased by 50% from July to US$1.4 trillion, suggesting the potential of the counterfeit season. But investors must be rational about structural bull markets: funds are flowing in projects that have real advantages in gold flow or compliance (such as Ethereum ETF scale of US$22 billion), rather than general rises; at the same time, we need to be wary of risks (the possibility of institutional sell-offs and global macro uncertainty). The money market fund size of US$7.2 trillion indicates that funds may be released from low-risk assets after interest rate cuts, becoming a potential driving force for the bull market. #Powell#Fed rate cut#September rate cut#83.6% #Preventive rate cut#Bailout rate cut#Bitcoin#Altcoin#Fraud quarter#Liquidity#Money market fund#1.4 trillion#50% growth#59% #ETF #Ethereum#22 billion#RWA #Risk Assets#Bul market#Structural opportunity to become a member of this channel to enjoy the following benefits: https://www.youtube.com/channel/UCO5ER7iDBK62VMbbFQRkBZg/join Welcome to "Coin Emperor BD"! Here is your "no threshold" class for understanding virtual currencies, blockchain, Bitcoin, Dogecoin, and even WB3.0. We are not telling you how to "mine" and make money, but we will take you deep into the real "minerals" behind virtual currencies - how technology, trends, markets, and even policies affect your wallet! From the birth of Bitcoin to the "earthy" emoticon culture of Dogecoin, we bring all these "virtual things" to you, and they are easy to understand without losing depth - allowing you to understand the truth in the currency circle in seconds. #btc #Bitcoin #Virtual Currency #Investment Analysis #Cryptocurrency
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