Is a 25BP rate cut a case of 'buy the rumor, sell the news,' or the start of a new rally? Watch for these two key signals!



The rate cut expectation has already been “chewed over” by the market for a month; now all that’s left is for the Fed to make it official early Thursday morning. If there really is a 25BP rate cut, I believe the market will indeed react in the short term, but the duration of the rebound depends on these two key signals:
Signal ①: Dot Plot Revision
If the dot plot suggests further cuts in 2025, the market will treat this rate cut as confirmation of a “dovish cycle,” and risk assets will all benefit.
Signal ②: Powell’s Tone
Will he be a “gentle, smiling Santa Claus,” or a “stern-faced manager of the money tap”? As soon as he speaks, assets worldwide will react accordingly.

Trading strategy:
1. Short-term strategy:
* Maintain light positions or avoid heavy predictive positions before the decision.
* At the moment of the announcement, watch BTC’s immediate reaction. If it quickly breaks through key resistance (such as previous highs), consider following with long positions.
2. Swing strategy:
* If the dot plot is dovish and the Fed signals future easing, consider swing long positions on major coins for a three- to six-week cycle.
* Wait for confirmation from major coins before entering altcoins, otherwise you risk getting caught out.

In short:
It’s not the rate cut itself that drives prices up, but the “future expectations” behind the rate cut. #美联储降息预测
BTC-0.67%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 3
  • Repost
  • Share
Comment
0/400
EarnMoneyAndEatMeatvip
· 12-09 22:46
View OriginalReply0
CoinRelyOnUniversalvip
· 12-09 22:22
Just go for it 💪
View OriginalReply0
SpicyHandCoinsvip
· 12-09 22:21
坐稳扶好,马上起飞 🛫
Reply0
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)