2026-01-10 12:30:54

The recent news has caused some turbulence in the market.

After a significant decline in the unemployment rate, the Federal Reserve Chair announced the cancellation of the previously planned rate cut in January. This shift came faster than many expected.

The key data is as follows: once the rate cut expectations are dashed, the market may face reallocation pressures exceeding trillion in funds. These funds won't disappear into thin air, but their flow will inevitably lead to structural changes. For crypto assets, this usually means a short-term increase in risk premiums.

Why is this not very friendly to assets like ETH and DOGE? Simply put, when traditional finance faces tightening expectations, institutional investors tend to withdraw from risk assets and flow back into relatively safer assets. This is no secret—macro liquidity tightening always first impacts the most volatile market sectors.

But don't be overly pessimistic. Such policy shifts are often temporary. The key is to observe the future trend of the unemployment rate and inflation data, which will determine where the market will find support and rebound. There is short-term pressure, but the long-term logic requires more data to confirm.

ETH0,38%

DOGE1,85%

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.

10 Likes

Reward
10
7
Repost
Share

Comment

0/400

FudVaccinator

· 13m ago

Here we go again, no rate cuts, and the market crashes directly... This script feels a bit familiar.

View OriginalReply0

MetaverseLandlord

· 16h ago

Here we go again? It's always the same pattern—cut interest rates, and institutions run away. We retail investors still get hammered.

View OriginalReply0

MetaMisfit

· 01-10 13:00

Here we go again? This time it really might drop. Institutions have already started to escape, just watching. 1 trillion USD looking for a new home, we're not even in the queue. Wait, why does the unemployment rate decrease but no rate cut? That logic is a bit off. Short-term stay flat, the rebound still depends on the data. Can't gamble, better to stay calm for now. Why does it feel like every time, the expectation reversal hurts the most? Long-term looks okay, just worried it won't last until that day. Really impressive, everyone keeps talking about the phase... but it's never really a phase. Data is the real boss, everything else is just stories. ETH has really been hammered to the point of having no temper. Let's just watch, don't make reckless moves. Where's the promised liquidity? How did it turn into liquidity freeze? If this continues, it seems like only shorting will make money.

View OriginalReply0

SelfSovereignSteve

· 01-10 12:58

Coming back with this again? When interest rate cuts are gone, institutions run away, but us retail investors are still holding on.

View OriginalReply0

MergeConflict

· 01-10 12:57

Oh no, it's going to be cut again. I already said not to chase highs. Now it's all good, institutions withdraw, liquidity evaporates, and small investors get trapped again. Let's wait and see if the unemployment rate can rebound; otherwise, this round is really uncertain.

View OriginalReply0

LiquidityWitch

· 01-10 12:47

fed just pulled the ultimate rug on our rate cut fantasy... the liquidity sacrifice begins lmao

Reply0

LightningAllInHero

· 01-10 12:31

Ah, here it comes again. The Federal Reserve's tactics are really quite clever. I've been waiting for institutions to run away for a while now; anyway, DOGE isn't going to drop much further. It's tough in the short term, but this is all just a shakeout. The key is the unemployment rate. Those wanting to buy the dip, get your bullets ready. A trillion dollars being poured in must have a destination... I bet it will still return to the crypto circle.

View OriginalReply0