What's going on? The Fed's interest rate cut plan has changed, and Wall Street's interest rate market has turned upside down!

Can we go all-in in the coin circle now? Which coin is worth investing in?

Each previous interest rate cut has been accompanied by a financial crisis, can we be spared this time? This decisive indicator unexpectedly gives a surprising answer!

So how should we proceed in the coin circle? Let's find out together.

First of all, the unexpected changes in the Fed's next interest rate cut have shocked me.

Initially, everyone thought that with a 50 basis point rate cut in September, the next rate cut might be smaller. However, looking at the chart, the next rate cut is likely to still be 50 basis points, with the probability now at 45.7% and still rising.

Because as you can see below, last week this probability was only 24.4%, the day before it was 34.4%, and today it has continued to rise to 45.7%.

So many people may have underestimated the determination of the Fed to cut interest rates. If they end up cutting 50 basis points and continue with more rate cuts, then this easing is really inevitable!

And because of this interest rate cut, both U and USD in everyone's hands have depreciated. Look at how U has dropped from 7.3 a few months ago to 6.8 now.

What does this mean? It means that if you still hold USD, your actual assets and purchasing power will shrink. So, the interest rate cut is forcing everyone to exchange their USD or USDT for other assets, especially US stocks or cryptos that are more sensitive to interest rates.

So everyone, don't take it lightly. In the future, there will be trillions of cash inflow from banks to the cryptocurrency market because the rationale is simple: if you don't buy, your USD will depreciate.

And as for the smart money on Wall Street, they will definitely buy. Even with lower interest rates and reduced financing costs, people will borrow money and leverage up to make purchases. That's why a Fed interest rate cut leads to a bull market.

Do you all remember the big bull market in 2020? Despite epidemic control measures and economic shutdowns everywhere, both the cryptocurrency market and US stocks relied on a 150 basis points interest rate cut by the Fed to jump from 4000 to over 0.06 million.

As we analyzed this current interest rate reduction cycle, the Fed will cut rates to 3.25% by June next year, accumulating a total reduction of 175 basis points, which is even larger than the cut during the epidemic. So this time's bull market in the crypto market will also be no exception, and opportunities are always for forward-thinking people.

Now, there's a point to be clarified: every time the Fed lowers rates, the S&P 500 will plummet, possibly leading to a financial crisis, which will also cause a sharp drop in the cryptocurrency market closely related to it.

It used to be like that before, but the process is reversed. Economic issues used to arise first, prompting the Fed to cut rates, rather than economic problems arising due to the Fed's rate cuts.

The fact speaks louder than words, everyone take a look at the chart.

Previously, the Federal Reserve had conducted super large consecutive rate cuts in 1984, 1989, and 1995, while the S&P large cap index did not encounter a financial crisis like the rate cuts in the early 2000s, instead they continued to rise significantly, with gains exceeding 50%.

Why is it that with the same rate cuts, their outcomes are like night and day?

In fact, if you delve into macroeconomics, this question is simply a giveaway.

Because the three rate cuts in the 1990s and this year's rate cut are preventive rate cuts, preemptive measures taken before any issues arise, while the rate cuts after the 2000 Internet bubble, the 2007 subprime mortgage crisis, and the 2020 pandemic are relief rate cuts, implemented after problems have occurred.

Currently, the US economy is strong, with GDP in the second quarter reaching as high as 3%, showing no signs of recession.

And the Federal Reserve cutting rates preemptively in a good economic situation is meant to prevent a possible recession, lowering interest rates before issues arise, thus reducing the probability of a financial crisis and increasing the chances of a soft landing.

Hey, after analyzing this, do you have a new understanding of the current market? Those who are not from a professional background simply do not understand these things at all.

Recently, the cryptocurrency market has indeed rebounded a lot, and many investors have started to fear heights.

However, from the perspective of various major indices, there is still room for further rise in the cryptocurrency market.

Because the market's greed and fear index is only at 50 now, which is very neutral, far from being greedy or extremely greedy with over 80. So my strategy now remains to buy on dips and wait for a takeoff.

Everyone must not underestimate this indicator. For example, on September 6th, when I saw the market in extreme panic, I advised everyone to go all-in. At that time, bitcoin was 0.05 million2, and ethereum was two thousand one. Many investors were too scared to buy the dip, thinking it would go down to 0.04 million or even 0.03 million, not realizing that was the best time to get in.

Because in trading cryptocurrencies, it's all about when others are fearful, I am greedy. I buy what others dare not buy. When others become greedy later on, I will gradually exit. But it's not the time yet, with the index just above 50.

Some investors may think that ethereum is not performing well because of its recent year's performance. But let me tell you, its performance in a bull market will definitely surprise you, take a look at the chart.

The chart shows the exchange rate of ethereum to bitcoin. Have you noticed the years 2017 and 2021? As long as a bull market arrives, ethereum can double compared to bitcoin in just two weeks, and it will rise very rapidly. It will double in just a week or two.

So, don't worry later on because now, when the market is just slightly warming up, its increase is already double that of bitcoin. When the bull market starts, you keep an eye out, it will skyrocket to the moon!