While a rate cut is expected, the anticipated bull market may be over.
Let's be realistic: even if a rate cut occurs tonight as expected, the market may not necessarily rally.
Since the beginning of the month, the three major US stock indices and gold have all risen continuously after the anticipated rate cut was priced in, and Bitcoin has returned to above $90,000. Everything seems to be "priced in."
However, don't forget that the market buys on expectations and sells on facts. Once the rate cut is implemented, investors will start to worry: Is this a signal that the economy is about to collapse? Has the Fed seen inflation getting out of control? Has the rate cut expectation been over-priced in?
This scenario of "good news realized = bad news sold off" has happened countless times in history.
The current surge in risk assets has already priced in the positive news. After the actual rate cut, a technical correction may follow. A more conservative strategy is to reduce positions on rallies and wait for confirmation of the correction before buying back in. What's truly reliable is "capital inflow + market confidence + synchronized macroeconomic trends," not "a rate cut announcement on a particular day." #CryptoMarketWatch #FedResumesRateCuttingPace #FedOfficialsSpeakOut
$BTC
{spot}(BTCUSDT)