Recently, I received a fren's anxious inquiry, feeling both excited and apprehensive about the upcoming Fed interest rate cut, worried about missing investment opportunities or making wrong decisions.

In fact, the Fed's interest rate cut this time is far from the large-scale liquidity injection expected by the market, and is more like a cautious "toothpaste" operation. Although the market craves liquidity, the Fed only lowered rates by 25 basis points, a small adjustment that indicates the decision-making body remains cautious about the economic situation.

There are significant differences within the Fed regarding the magnitude of interest rate cuts: some members prefer a more substantial 50 basis points to stimulate the economy, while others are concerned about a resurgence of inflation. The final decision of 25 basis points is actually a reluctant compromise, reflecting that the decision-makers have learned from the previous lessons of excessive easing.

The market's reaction to this interest rate cut has shown a polarization: optimists see it as a positive signal, believing that a weaker dollar will benefit safe-haven assets such as gold and BTC, while also alleviating the burden of loans; however, cautious individuals question the limited practical benefits of such a small rate cut for the economy, especially under the circumstances of rising raw material prices and financing difficulties for small and medium-sized enterprises. If inflation rises again, the consequences could be even more problematic.

In light of the current situation, I advise investors to stay rational.

First of all, do not enter the market blindly just because of the interest rate cut news. Closely monitor the CPI data release on the 24th; stable inflation is the foundation for continued easing.

Secondly, if you decide to allocate to crypto assets, you should prioritize mainstream coins with strong risk resistance such as BTC and ETH, and keep the investment ratio below 50%;

Finally, abandon the illusion of large-scale monetary easing and accept that this is a gradual and moderate easing cycle; adopting a strategy of taking moderate profits is more prudent.

In fact, trying to fully understand the Fed's policy intentions is extremely difficult. It is important to remember that interest rate cuts are not a risk-free golden ticket for profit; only by maintaining discipline and strictly controlling positions can one avoid potential opportunities turning into actual losses.

If you often feel confused in your investment decisions and hope to gain more practical strategies and market insights, feel free to follow me. Let's keep a clear mind together and avoid market traps.