The Fed is about to start cutting rates, while the Bank of Japan might actually raise rates. Global central banks are moving at different paces, so the crypto market could first surge and then drop, leading to especially high volatility. There are plenty of money-making opportunities hidden in this, but you also need to watch out for risks.



The Fed will open its rate-cut window on December 9-10. Based on past data, crypto typically rises by more than 15% on average in the three days after a rate cut. Meme coins like DOGE usually go up the fastest, and Bitcoin might even have a shot at hitting $100,000. But there’s a risk of a rate hike at the Bank of Japan’s meeting on December 18-19. If they really do hike, market liquidity will tighten and there could be a massive sell-off and crash—last time the BOJ unexpectedly raised rates, Bitcoin dropped 18% in a single day, and some altcoins lost half their value instantly.

Make sure you remember the key time windows and don’t get caught off guard: December 9-15 is a good period—the market sentiment will improve after the rate cut, with major coins rising first and altcoins following. It’s a good short-term opportunity to buy coins that benefit from rate cuts. From December 16-19, you should stay on the sidelines and be cautious—if there are clear signals of a BOJ rate hike before their meeting, sell to take profits early to avoid losing gains if there’s a preemptive dump.

There are also two big risks to avoid: First, a major drop caused by a rate hike—if the BOJ hikes, Bitcoin could fall by more than 20%, and high-leverage traders could lose all their capital. Second, anti-money laundering regulations—US authorities are cracking down, and crypto transactions over $10,000 must be reported. Frequent large transfers could get your account frozen, making it impossible to withdraw your profits.

If you’re a retail investor wanting to safely capitalize on this market, just remember these three points: ① Trade short-term—buy major coins like BTC and ETH within three days of the rate cut, sell after making 10%, and don’t get greedy; ② Hedge your risks—use options and futures to protect against the possibility of a rate hike-induced crash, so you don’t lose your principal; ③ Trade compliantly—report large transactions in advance, don’t use unlicensed platforms, and make sure you can actually access your funds.

It’s tough to handle this wave of volatility alone. Follow me to get access to coins with 10x potential and high-quality primary market resources. I’ll help you precisely seize the profit opportunities from the rate cut and avoid the risks from rate hikes—let’s make money together in this market cycle.
DOGE-0.41%
BTC-0.33%
ETH-0.16%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)