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This issue has been making quite a stir lately. Trump has publicly called out the Fed, demanding that Powell cut rates next week, and even cited JPMorgan CEO Jamie Dimon's stance as backup, saying that even this Wall Street veteran thinks it's time to lower rates.
Dimon has always been cautious, and his attitude toward crypto assets hasn't exactly been friendly. Now that he's openly supporting rate cuts, it shows, to some extent, that traditional financial institutions' anxiety over current monetary policy has become apparent. Trump is using this as leverage, clearly trying to send a signal to the market—that rate cuts are no longer just one person's idea, but an industry consensus.
A few points worth noting:
The market is now pricing in a 98% chance of a rate cut in July, and Wall Street money is being massively reallocated, with risk assets becoming the hot commodity.
If a rate cut really happens, global liquidity will loosen up again and the capital pool will get bigger. But the question is, is this a necessary adjustment for the economy, or just political maneuvering in an election year? Why did Dimon change his tune at this particular moment?
For the crypto market, rate cuts are usually seen as bullish. But there's another possibility: once the news is out, it could become a "sell the news" turning point. Will BTC continue to rise, or is this the peak before a pullback? Will the Fed hold its ground and refuse to cut?
If you have cash on hand, should you enter the market now or wait and see? There are no standard answers to these questions.
The market changes every day, and staying calm is more important than anything. If you're also thinking about these issues, feel free to join the discussion and share your views.