On September 19, the Federal Reserve announced on the 18th that it would lower the target range for the federal funds rate by 50 basis points, 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 loosening cycle. The dot plot indicates that the Fed expects to cut rates by another 50 basis points this year.

According to observations from 4E Exchange, after the rate decision announcement, the US stock market experienced a rollercoaster ride, with the three major indexes surging and then falling back, ultimately closing slightly lower. The Dow Jones and S&P 500 indexes both hit record highs during the day. Non-US currencies rose across the board, oil prices fell slightly, gold rose to a new high before turning lower, and the cryptocurrency market rallied. As of press time, Bitcoin is up 3.26% and Ethereum is up 3.1%.

With the beginning of the rate cut cycle and the continued decline in risk-free interest rates, institutional investors may increase their allocation to the cryptocurrency market, seeking higher returns. However, it's important to note that while rate cuts typically have a positive impact on risky assets, large-scale rate cuts have also raised concerns about the health of the US economy, which can significantly affect prices. 4E reminds you to be aware of market volatility risks in the near future and manage your assets wisely.