Hello Project HOPE friends, I hope you are doing well today. The crypto market is a bit complex to understand, especially if we focus on seeing it in the short term, but when we go macro, everything starts to make a little more sense, at least for me.
Obviously I am talking about the US Central Bank (FED), given the weight that the USD has in the global economy, and that each decision made by the FED has an impact on the global economy. Although it is progressively losing strength, the US dollar remains the most important currency globally.
When we analyze what is happening at a macroeconomic level, especially considering that the first cut in interest rates is approaching on September 18, a rate that has been rising for two years and has not fallen even once. , strengthening this restrictive policy on the part of the FED, I believe that this cut is being highly anticipated, and the reactions prior to the cut are already being seen.
In general, when cutting rates what happens is that money begins to become a little cheaper, although in reality it is quite expensive, since we have current figures of 5.5%, this is very high, and even if they dropped 50 basis points , would continue to be high, but without a doubt, it would open the doors for future interest rate cuts, in the medium term, and that speaks well.
The process here is that there begins to be more circulation of money, which generally tends to flow to stock investments, and lately to Bitcoin first, then to Ethereum and later to the other cryptocurrencies, causing practically all of them to rise in price, not They are all going to explode, to give a large percentage of profits, we will not become millionaires with $10 of investment, but by having extreme patience we can obtain some good results, some economic benefits.
But logically I am talking about more stable project currencies, since we know that there are more and more meme currencies, which have high volatility and generally tend to have a short period of existence, except for some that last, but there are few that They manage to maintain themselves, they generally follow a short cycle, where a few tend to benefit and many lose money, it is the reality, at least it is what I have been able to see.
In particular, I stopped getting involved in these types of projects a long time ago, I don't want to expose myself to currencies with such high volatility, which can come out today, reach 1000% and within a few hours, or even minutes, disappear. What is very true is that those good times will come again, when we were enjoying good profits on this platform, you just have to be patient.
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Upvoted 👌 (Mana: 7/8) Get profit votes with @tipU :)
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We need to learn how the market works and be patient on how things work and the crypto market is not something that one must be able to rush because it must have side effect
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Thank you so much for your valuable information.
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