In the midst of strategizing, we can win from a thousand miles away. Hello everyone, I am Lin Chao, a global financial market observer, focusing on cryptocurrency market analysis, bringing you the most in-depth trading information analysis and technical teaching.

Lin Chao has not been posting frequently recently, and many friends have sent private messages asking about Lin Chao's recent situation. Thank you all for your concern; everything is normal. The market rhythm is just as we previously judged. I believe users who have followed the rhythm of the articles should have earned the expected profits. We are now at a critical juncture, and more friends are concerned about whether there will be any specific changes in the cryptocurrency market direction after this round of interest rate cuts. Today, Lin Chao will provide a simple breakdown of the market direction after the interest rate cuts. Of course, any judgment about the future market is subjective. If users really have trading needs, they still need to be prepared for both scenarios before entering the market. Whether the market goes up or down after the interest rate cuts, there must be corresponding trading plans to maintain clarity in this volatile market environment.

Lin Chao will first state the conclusion. There will be a wave of inducement before the interest rate cuts, and a periodic waterfall decline after the interest rate cuts.

The narrative of interest rate cuts has been repeatedly hyped since the market began to rise in May. From the current market response, it is very weak. Even if a real interest rate cut occurs, as long as it is not an explosive cut of 100 basis points or 200 basis points, in Lin Chao's view, it is actually the rhythm of good news being fully priced in. The market sentiment regarding interest rate cuts has already been digested by the market over the past three months. Regarding the current market trend, Lin Chao believes that there will still be a wave of inducement before the interest rate cuts, allowing financially naive newcomers to enter the market, while the main players raise prices to offload their positions.

It is important to know that "three feet of ice does not form in a single day." All bull markets in financial markets do not form in a day. When do you think the bull market starts?

Lin Chao believes that this bull market has actually lasted for more than a year, starting in 2024, and will continue throughout the global interest rate cut cycle. Lin Chao has always emphasized that no market only goes up without going down. Even in a bull market, it cannot rise continuously, including the few months of correction at the beginning of 2025, which, although it did not change the direction of the bull market, did scare off many long-term holders. Since then, from May to now, we have seen the new highs of BTC, ETH, and some altcoins. It is important to understand that the cryptocurrency market is still a high-risk, high-reward market. In this market, the most important thing is to protect your principal from erosion. Whether Lin Chao asks everyone to establish their own trading systems or to use all available tools in the market for reasonable hedging, the ultimate goal is to preserve capital and make profits. The bull market still exists, and the depth of corrections will not be small; both will coexist as this bull market progresses.

From the current market sentiment, retail investors are not overly enthusiastic. First, because the cryptocurrency market has experienced many ups and downs over the years, everyone knows that while it can be profitable, the volatility often causes some people to get hurt. For veteran players, there is a fear of buying at the halfway point or at the peak, as any correction can be fatal. New players may be bold but lack attention to detail; generally, when new players start, they think they can make money in spot trading and then go all in on contracts, completely ignoring the risks. They usually do not last long and may even come to hate or fear this market, not realizing that their own greed has ruined their future. When they make money, they think it is due to their own ability, and when they lose, they blame the market for harvesting, claiming they are unlucky. This is human nature; the market is merely an amplifier of human nature. Therefore, when human nature is amplified by the market, even in a rising bull market, people will still treat it with caution. It is only when the market is about to end that those who are late to realize will truly understand what it means to miss out.

In fact, in any financial market, there are only four types of people. The early prophets, the late prophets, the late realizers, and the late followers. The early prophets are very few, accounting for less than 1%, generally belonging to guides or market makers. The late prophets account for about 10-15%, consisting of experienced professionals who spend time researching. The late realizers account for about 5-10%, consisting of those who are bold, have spare money, and are strong in execution. The remaining 70-80% are late followers, who have made money but ultimately become the "chives" traders. Including Lin Chao, it is difficult for everyone to become an early prophet. However, one can strive to become a late prophet or a late realizers, at least not to fall into the category of late followers. No market can allow everyone to make money. If we are both sides of a zero-sum game, you need to defeat me to make money, then please ask yourself, what advantages do you have?

Lin Chao predicts that it will be difficult for the cryptocurrency market to see a broad rise like before; there will only be sector rotations. Just like all regulated financial markets, although the index may rise, not all stocks will go up. The cryptocurrency market is also divided into sectors; ETH has been leading the rise since June, so the increase of small coins on the Ethereum chain is much larger than that of the SOL chain. Of course, there are also DeFi, AI, NFT, etc. Each sector has its own leading coins. As long as this sector has not yet started in this round of market, there is still potential for upward movement. The top 10 market cap coins are preferred; coins that have already exploded in this bull market will not perform well in the short term. They will not crash, but it is also difficult for them to surge. Lin Chao does not recommend specific coins; this requires everyone to study carefully. Ultimately, wanting to make money is your own business. Lin Chao will not overly focus on all profitable matters; time and experience are limited, and money in this market is not endless. Teaching someone to fish is better than giving them fish. What Lin Chao can tell everyone are just methods to make money and general judgment methods. If users are uncertain about their choices or unclear about the future market direction, they can also privately message Lin Chao for discussion.

If you are in a state of confusion—unable to understand technology, not knowing how to read charts, unsure when to enter the market, not knowing how to set stop losses, not understanding take profits, randomly increasing positions, getting stuck while trying to bottom out, unable to hold onto profits, missing out on market opportunities… these are common problems for retail investors. Lin Chao can help you establish the correct trading mindset. A single profitable trade is worth more than a thousand words; finding the right direction is better than repeatedly facing defeat. Instead of frequent operations, it is better to strike precisely, making each trade more valuable.

The success of investment depends not only on choosing good targets but also on when to buy and sell. Protecting your principal and making good asset allocation is essential for steady progress in the ocean of investment. Life is like a long river flowing into the sea; what determines victory or defeat is never the gains and losses of a single pass or the profits and losses of a moment, but rather planning before action and knowing when to stop to gain.

The global market is ever-changing, and the world is a whole. Follow Lin Chao to gain a top-tier global financial perspective.

This article is merely a personal opinion and does not constitute any trading advice. The cryptocurrency market has risks; invest with caution!

Real-time consultation, feel free to follow the public account: Lin Chao on Cryptocurrency.

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