The Fed is likely to cut rates by 25 basis points this week, but that's not the main point. Powell might signal: Want more cuts next year? Not so fast.
This sounds contradictory, but there's more to it. Rate cuts are generally good for risk assets like Bitcoin—when the dollar weakens, hot money tends to flow into crypto. But those words “high threshold” send a signal: don’t expect rate cuts to become the norm, and policy could shift at any time.
The mistake retail investors make most often? Jumping in as soon as they hear about a rate cut, only to end up buying at the top.
Stay calm and take it in two steps: First, if the market rallies after the meeting, you can follow with a small position. But remember, fast profits require quick exits—don’t get greedy. Second, if Powell pours cold water and emphasizes a “pause in rate cuts,” don’t panic. Use the pullback to accumulate in batches—that’s the real opportunity.
My view? The rate cut has long been priced in; what really determines the trend is “whether there will be more cuts.” Hold your spot positions tightly, dare to buy on dips, don’t chase on the way up, and keep some cash ready for unexpected moves. The bull market isn’t over, but you need to tread carefully every step of the way.
The market isn’t short on opportunities; what’s lacking is the discipline not to be led by emotions. Stay clear-headed, and your trades will be steady.
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AirdropATM
· 12-08 09:48
Powell's tactics are truly brilliant: the rate cut is just a smokescreen, the key is to manage expectations for the future with his statements.
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SellTheBounce
· 12-08 09:44
The expectation of rate cuts has long been widespread; the real impact still comes from Powell's words. Sell during the rebound, don't be greedy.
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MeaninglessApe
· 12-08 09:44
Cutting interest rates to trade stocks—Powell is the real director. Don’t get fooled by a 25bp rate cut.
The Fed is likely to cut rates by 25 basis points this week, but that's not the main point. Powell might signal: Want more cuts next year? Not so fast.
This sounds contradictory, but there's more to it. Rate cuts are generally good for risk assets like Bitcoin—when the dollar weakens, hot money tends to flow into crypto. But those words “high threshold” send a signal: don’t expect rate cuts to become the norm, and policy could shift at any time.
The mistake retail investors make most often? Jumping in as soon as they hear about a rate cut, only to end up buying at the top.
Stay calm and take it in two steps:
First, if the market rallies after the meeting, you can follow with a small position. But remember, fast profits require quick exits—don’t get greedy.
Second, if Powell pours cold water and emphasizes a “pause in rate cuts,” don’t panic. Use the pullback to accumulate in batches—that’s the real opportunity.
My view? The rate cut has long been priced in; what really determines the trend is “whether there will be more cuts.” Hold your spot positions tightly, dare to buy on dips, don’t chase on the way up, and keep some cash ready for unexpected moves. The bull market isn’t over, but you need to tread carefully every step of the way.
The market isn’t short on opportunities; what’s lacking is the discipline not to be led by emotions. Stay clear-headed, and your trades will be steady.