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The Fed's recent move is quite interesting—25 basis points rate cut but only one cut expected next year? Isn't this implying that there's no hope afterward? 🤔
Powell said, "Only a significant deterioration in the employment market will lead to further rate cuts," implying—hold steady, the rate hike cycle might be coming. The dot plot was expected to show 2 cuts but was cut down to 1, and the market's reaction was incredible—Bitcoin instantly broke 94,000 and then immediately retreated, a typical case of "fearing hawkish statements and panicking."
Interestingly, some analysts are still calling for a 100 basis point rate cut next year, but that's clearly a minority view. Although inflation is trending downward, it remains high, and there are significant divisions within the Federal Reserve, which means—tightening liquidity is highly likely.
For our crypto circle, this is a signal: the short-term FOMO space may be shrinking, and it will depend on upcoming labor market data. Those small altcoins expecting a big flood of liquidity next year might get hit, but if unemployment data truly worsens, it could actually be an opportunity. Now, it's just a matter of waiting for the data—don't be scared by hawkish statements. 💪