The U.S. Federal Reserve is considering implementing a series of interest rate cuts to stabilize inflation and the job market. According to current forecasts, there could be three rate cuts this year, totaling between 75 to 100 basis points. However, the market generally expects there may only be 2 to 3 rate cuts.

In order to effectively regulate the economy, the Federal Reserve may need to cut interest rates three times in a row, each time by 25 basis points. This series of actions aims to balance inflationary pressures and the stability of the labor market.

Regarding the upcoming interest rate decision meeting, it is very likely that a 25 basis point rate cut will be announced early this Thursday. Some believe that a 50 basis point cut may even be necessary to effectively boost the job market. However, we should not simply assume that a rate cut will necessarily benefit the cryptocurrency market.

It is worth noting that the expectation of a 25 basis point rate cut has already been priced in by the market. Therefore, the market reaction may show a "shooting star" pattern of rising and then falling. If the Federal Reserve decides to cut rates by 50 basis points, it may exacerbate market panic, leading to more funds flowing into gold and other investments considered relatively stable. The current hot performance of the gold market has already confirmed this.

Therefore, investors should not have overly high expectations for a rate cut in September. Although market sentiment may react, we must be cautious of potential volatility. In this case, it is not advisable for investors to go all in on the market or to position themselves solely based on the expectation of a rate cut.

We need to recognize that market trends are influenced not only by interest rate cut decisions but also by overall market sentiment and macroeconomic conditions. Next, we will closely monitor the Federal Reserve Chairman's views on the upcoming two interest rate meetings, as well as whether the discussions at the Jackson Hole meeting will reflect a dovish tendency or if this will be the last significant decision during the current chairman's term.