June 27th Market Talk

Recently, the financial world has been buzzing with rumors that Trump may unveil who the next Federal Reserve Chair will be. The current chair's term doesn't end until May next year, but it seems that in the coming months, Trump might officially announce his successor. This is because Trump has been criticizing the current Federal Reserve for being too slow in lowering interest rates. If the new chair is someone he trusts, then everyone is likely to feel that interest rates will drop faster in the future, which would boost confidence in the market.

This round of interest rate cuts by the Federal Reserve is indeed much slower than before. According to past patterns, interest rates should be lowered significantly by now, perfectly coinciding with the stock market bull run. However, strangely, even though the stock market keeps hitting new highs, everyone is hesitant to invest boldly. Even the investment guru Warren Buffett is holding a large amount of cash, indicating that there is still uncertainty among people.

The market is now like it's waiting for a "calming pill"; as long as the dollar interest rates come down, the investment direction will become clear, and then it will be possible to consider gradually selling off profitable stocks. Before the rates are really cut, the market is likely to continue fluctuating. However, according to the historical patterns of fund flows, there may be another wave of upward momentum coming. Especially if the new chairman candidates are announced in July or August, and expectations for interest rate cuts rise, both the stock market and the cryptocurrency market might see a surge.

Back to the crypto world, the rise and fall of Bitcoin is tightly bound to the trends of the US stock market. If Bitcoin can break through key price points, the entire crypto market may come alive. As for various altcoins, we still need to see when Ethereum will take the lead in rallying. So, the market right now is a series of interconnected factors, and there is no big trend at the moment. It is advisable for everyone not to go all in, but to try small positions on popular opportunities first. The real big market trend requires patience, and let's consider this period of calm as preparation for the storm.