Fri, September 20, 2024 at 09:11

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some significant news regarding the recent Federal Reserve rate cut and its impact on the markets.

  • 
• Annie

  • Oh, interesting!

  • What exactly happened?😊

  
• 

  Kang-hoon

  • The Federal Reserve cut interest rates by 50 basis points.

  • This is the first rate cut in four years, and the markets have reacted very positively.

• Annie

  • Wow, that sounds like a big deal!

  • How did the markets respond?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • Indeed, it is.

  • The S&P 500 posted a new all-time high, shooting through $5,700.

  • The Nasdaq also improved by 2.6%.

  • Bitcoin surged more than $4,000, briefly touching $64,000 on Friday.

• Annie

  • That's impressive!

  • So, is this a sign of further growth in the markets?

  
• 

  Kang-hoon

  • Yes, with potentially another three U.S. rate cuts before the end of the year, the scene is set for possible further growth across all markets.

  • The S&P 500 is currently leading that growth.

• Annie

  • And what about Bitcoin?

  • Do you think it will follow the U.S. stocks and make its own all-time high?

  
• 

  Kang-hoon

  • Bitcoin, being a more volatile risk asset, could indeed outperform in this environment of loosening monetary policy.

  • However, in the short term, a correction might be beginning.

• Annie

  • A correction?

  • What does that mean for Bitcoin's price?

  
• 

  Kang-hoon

  • Short-term price action suggests that Bitcoin's price might come down to the 0.382 Fibonacci level at $61,600.

  • A deeper dip to the 0.618 Fibonacci level at $60,000 is also a possibility.

• Annie

  • I see.

  • So, what should we expect in the longer term?

  
• 

  Kang-hoon

  • In the longer term, the macro weekly chart looks very bullish.

  • The big battle at $65,000 resistance is likely to take place, and if Bitcoin breaks through, we could see significant upside momentum.

• Annie

  • That sounds exciting!

  • What about the S&P 500?

  • Any specific targets?

  
• 

  Kang-hoon

  • The S&P 500 has broken through the resistance at $5,639 and is now targeting $6,967 at the 2.618 Fibonacci level, which is a 22% rise from the current price.

• Annie

  • That's quite a target!

  • Do you think the market will sustain this growth?

  
• 

  Kang-hoon

  • Given the current monetary policy environment and the potential for further rate cuts, it is likely that the market will sustain this growth.

  • However, investors should always be cautious and consider the volatility.

• Annie

  • Thank you for the detailed explanation, Kang-hoon.

  • So, overall, would you say this news is a positive development for the markets?

  
• 

  Kang-hoon

  • Yes, I would say this news is a positive development.

  • The rate cut has provided relief and optimism, setting the stage for potential growth across various markets, including stocks and cryptocurrencies like Bitcoin.

  • 
• Annie

  • Great to hear!

  • Thanks again for the insights.

  • This really helps with my investment decisions.👋

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always happy to help.

  • Take care!

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.