As news of the Fed possibly lowering interest rates spreads through the market, discussions in the crypto world are becoming increasingly heated. This potential change in monetary policy has sparked various speculations among investors about the direction of the market.

There is a perspective that interest rate cuts are usually seen as positive news and may stimulate a short-term market rise. However, Chris Burniske, former head of crypto operations at Ark Invest, raised a thought-provoking point: interest rate cuts may lead to a brief excitement in the market, followed by potential downside risks.

Burniske's analysis is based on the logic that in the early stages of interest rate cuts, investors may shift their funds to high-risk assets like Bitcoin, driving up the market in the short term. However, this increase may be difficult to sustain, as fundamental issues—such as inflation and employment data as economic indicators—still exist. Once investors realize this, market sentiment may quickly shift, leading to a price decline.

It is particularly noteworthy that Bitcoin may temporarily follow the trend of gold. During periods of economic uncertainty, these two assets are often seen as safe-haven tools. However, if by the end of the year other risk assets begin to be sold off significantly, Bitcoin may not be able to stand alone and could even experience more severe fluctuations.

For ordinary investors, it is crucial to remain vigilant in this market environment. Although short-term market fluctuations may present investment opportunities, blindly chasing after rises and falls often brings risks. Staying calm, rationally analyzing market trends, and avoiding emotional decision-making is the wise choice to cope with market volatility.

Regardless of how the market changes, always remember the basic principles of investing: the market is always full of ups and downs, maintaining a calm mindset and a long-term perspective is the key to successful investing. During this period of uncertainty, making prudent decisions and diversifying investment risks is particularly important.