Author: Jack Inabinet Source: bankless Translation: Shan Ou Ba, Golden Finance

The Federal Reserve just announced a rate cut, the first since the epidemic, as expected, a significant 50 basis point reduction. This long-awaited decision immediately sparked excitement among stock and Crypto Assets investors.

Powell's printing press has finally restarted, which is why many people in the market are optimistic that this rate cut could trigger another Cryptocurrency Bull Market.

In 2022, the Federal Reserve raises interest rates to combat high inflation, resulting in rising borrowing costs and falling asset prices, triggering a Bear Market. However, with the decline in interest rates, many people expect that loose monetary policies may gently guide the global economy to achieve a soft landing.

If inflation no longer soars, and rate cuts help maintain stable unemployment, Central Bank governors can achieve incredible feats - eliminating major economic uncertainty and achieving global economic stability levels unseen in decades!

Despite the latest economic forecast from the Federal Reserve seeming to lean towards further rate cuts in the future, it also reflects the uncertainty of the situation, with inflation forecasts being lowered, GDP estimates remaining flat, and a significant rise in the unemployment rate expected.

The biggest economic risk has shifted from inflation rise to declining employment rate, and the decision to cut interest rates is a clear evidence. Although Federal Reserve officials and other central bank governors are confident in managing these risks through further rate cuts, any sustained economic downturn could quickly turn into serious recession concerns.

Global bond yields, which have been rising since Tuesday, only fell slightly after the interest rate cut was confirmed, indicating that the market has already factored in this factor and started to rise early from July. Although BTC rose by about 2% after the interest rate cut news came out, the market quickly started dumping and wiped out the gains before the close.

While the initial excitement brought by the interest rate cut is evident, the rapid market reversal indicates that uncertainty still exists. Investors are now closely following the economy's response to these changes, hoping for a smooth transition but remaining cautious about potential turbulence in the future. As the balance between inflation, employment, and rise continues to unfold, it remains to be seen whether this will truly trigger the next Cryptocurrency Bull Market or provoke deeper concerns about a recession.