The Fed's words are deceiving! Two days ago, hawkish rhetoric terrified the market; last night, dovish pronouncements fueled a massive rebound—this isn't policy intervention, it's an emotional rollercoaster.
Key Takeaways: The Fed officials' hawkish stance the night before last caused market panic and a sharp drop; however, last night they suddenly shifted to a dovish stance, with the probability of a December rate cut soaring from 30% to 71%. In short, the Fed itself is wavering based on data, fearing both a rebound in inflation and an economic recession, and is testing market reactions through its statements.
Shenbi's View: Don't be fooled by the Fed! Rising rate cut expectations ≠ a bull market return. This rebound is a short-term sentiment correction driven by news, not a trend reversal. Large funds are using this opportunity to profit from retail investors, who are likely to get trapped halfway down the price. Remember: the Fed's dovish stance is like candy, but it may hide a knife.
Retail Investor Trading Strategies:
1. Don't blindly buy the dip: Don't FOMO when BTC and ETH rebound; patiently wait for a second dip.
2. Invest in resilient assets: Focus on ETH and SOL in the staking sector, and BTC with halving expectations.
3. Be cautious when opening contracts: High leverage will inevitably lead to losses when volatility surges.
4. Reserve ample cash: Maintain at least 30% cash reserves until January 2026, and only invest heavily after the Fed actually cuts interest rates.
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I only provide realistic logic, not motivational platitudes.
The cryptocurrency market is full of uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the associated risks, remain calm and rational, and use a prudent strategy to cope with market changes!