Macroeconomic Interpretation: This time, we will talk about the analysis of the Federal Reserve's interest rate decision. This week, the Federal Reserve will hold its last interest rate decision of the year, and the market widely focuses on and generally expects that the Federal Reserve will continue to cut rates by 25 basis points. This expectation coincides with the general view on Wall Street, indicating that the Federal Reserve will remain accommodative in its monetary policy.
Economists at Goldman Sachs hold a similar view and point out that the Federal Reserve may indicate a future slowdown in easing measures at this week's meeting. They predict that although the Federal Reserve will still cut rates by 25 basis points this week, the pace of cuts will noticeably slow down afterward, and there may even be a pause in cuts in January next year. Goldman Sachs economists believe that the reason for this shift lies in the unemployment rate being lower than expected, while inflation remains above target levels. Therefore, the Federal Reserve needs to seek a balance between maintaining economic growth and controlling inflation.
Meanwhile, Nick Timiraos from the 'New Federal Reserve News Agency' also expressed his views. He believes there are internal divisions at the Federal Reserve regarding rate cuts, with hawkish officials concerned that cuts could exacerbate inflation issues, while dovish officials are more focused on the risks posed by slowing economic growth. In the face of this divide, Federal Reserve Chairman Powell needs to balance policy adjustments to ensure the reasonableness and effectiveness of monetary policy.
From the market performance perspective, the USA labor market currently shows subtle signs, with both hiring and layoff rates at low levels. Economic growth remains relatively stable, but the unemployment rate has risen. In addition, some interest rate-sensitive industries, such as the housing market, have not fully benefitted from the effects of the rate cuts. Therefore, the Federal Reserve needs to consider multiple factors when adjusting monetary policy to ensure that policies are reasonable and targeted.
Analysis of the impact of the Federal Reserve's interest rate cut decision on the crypto market: The Federal Reserve's rate cut policy has also had some impact on the crypto market. On one hand, rate cuts help enhance market liquidity and reduce financing costs, which may promote an increase in trading volume in the crypto market. On the other hand, rate cuts may also lead to some funds flowing into traditional financial markets, creating a certain pressure of fund diversion on the crypto market.
However, in the long run, adjustments to the Federal Reserve's monetary policy will have a profound impact on the future development of the crypto market. With the continuous changes in the Global economy and the increasingly complex financial markets, the crypto market needs to closely monitor the policy dynamics of central banks such as the Federal Reserve to formulate reasonable investment strategies and risk prevention measures.
BTC Analysis:
BTC fell first and then rose last week, dropping twice to around 94,150 dollars near the trendline from a low of about 101,350 dollars, consistent with our prediction last week that 'the closing price is temporarily above the upward trendline; if it does not break, it is expected to continue the recent overall upward trend,' and subsequently entered a phase of rebound - fluctuation - rise, reaching a new historical high of 106,648 dollars during the day. After reaching a historical high last week, the US stock market experienced a slight adjustment, with overall trends relatively aligned. This week is a super central bank week, with market expectations of nearly 100% probability of a rate cut in this Federal Reserve interest rate decision. Several economic data will be densely released, and more correlated performances are expected. The rise during the day was also mainly influenced by Trump's renewed proposal to establish a Bitcoin strategic reserve.
After the daily line closed with a moderate gain in the morning, it is expected that overall there will be a rise followed by a pullback. It has already reached a historical high. Apart from the recent highs, there are no historical resistance levels to reference above. The support levels refer to the low points from the weekend pullback at 100,610 dollars and around 99,212 dollars. As long as it does not break below, there is a high probability that the market will continue the bullish trend. CoinAnk Indicators at the 4-hour level have shown bullish signals since December 12, and it may be considered to maintain a right-side trading approach primarily focused on buying during the pullbacks.