On September 18th, the Federal Reserve announced a 50 basis point cut to the federal funds rate target range, exceeding market expectations. This is the first rate cut by the Fed in four years, marking a shift from a monetary policy tightening cycle to a easing cycle. The dot plot indicates the Fed expects to cut rates by another 50 basis points this year.

According to 4E Exchange observations, US stocks experienced a rollercoaster ride after the rate decision was announced, with all three major indices surging before retreating and ultimately closing slightly down. The Dow Jones and S&P 500 both reached record highs during the session. Non-US currencies rose broadly, crude oil dipped slightly, and gold climbed to a new high before falling. The cryptocurrency market rallied across the board, with Bitcoin gaining 3.26% and Ethereum rising 3.1% at press time.

With the start of a rate cut cycle and the continued decline in risk-free rates, institutional investors may increase their exposure to the cryptocurrency market in search of higher returns. However, it's important to note that while rate cuts typically have a positive impact on risk assets, significant cuts have also prompted some market concerns about the health of the US economy, which can significantly affect prices.

4E advises you to be mindful of market volatility in the coming period and allocate your assets wisely.