2025-12-31 10:23:45

Once global economic data continues to weaken and the US economy faces moderate downward pressure, the Federal Reserve is likely to accelerate the pace of rate cuts. At that time, the US dollar may depreciate trend-wise, which would be positive for commodities priced in dollars.

Some analysts point out that in this scenario, related asset prices could potentially gain 5% to 15% upside, depending on the speed and magnitude of rate cuts. In other words, every policy shift by the Federal Reserve will directly impact the performance of our assets. Economic data is key, and rate cut expectations are the trigger.

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.

10 Likes

Reward
10
6
Repost
Share

Comment

0/400

GateUser-0717ab66

· 4h ago

Wait, are we hearing the story of another rate cut hype? Last year I heard it so many times this year I'm almost tired of it. The key is, will the Federal Reserve really follow the usual pattern? A 5-15% increase sounds good, but I always feel like the retail investors are the ones getting reaped. The more aggressively the rate cut expectations are hyped, the greater the possibility of a reverse operation, but it seems like there's no other choice for the coins in hand. By the way, can commodities really rise this time? Or will I have to buy the dip again?

View OriginalReply0

UnluckyLemur

· 4h ago

The expectation of interest rate cuts has long been overhyped; the real profit comes from who reacts first. --- Another 5-15% increase; such potential is hardly worth mentioning. --- The key is when the economic data will truly weaken; right now, it's still on paper. --- As soon as the Federal Reserve shifts its stance, everyone follows suit. Can we not be so uniform this time... --- I'm optimistic about commodities, but I'm worried it might just be loud noise with no real action. --- To put it simply, it's still a bet on the Federal Reserve's resolve; if the data looks good, they won't cut at all. --- This logic makes sense, but the question is who can accurately time the entry.

View OriginalReply0

ETH_Maxi_Taxi

· 4h ago

As soon as the rate cut expectation emerged, BTC and commodities took off I've been expecting the Federal Reserve's move for a while. Honestly, a 5-15% increase isn't a big deal; the key is the dollar depreciation driving on-chain assets Economic data is the real trigger; just keep a close eye on it over the next few months

View OriginalReply0

NightAirdropper

· 4h ago

The Fed cutting interest rates is really a positive signal, but the question is whether you can catch the bottom? I don't quite believe in the expectation of rate cuts; let's wait for concrete evidence before making any moves. 5% to 15%... sounds good, but who dares to go all in? When the dollar depreciates, commodities rise; the logic is clear, now it's about how to position yourself to make money. Does weakening economic data mean rate cuts? Aren't there other variables? Here we go again, after all, the Fed has the final say. We're just here to enjoy some soup. The 5 to 15 percentage point range feels exaggerated; earning half of that would be great. Every change by the Fed is an opportunity; the key is how quickly you react. Ah... once again, it's about betting on the Fed's rhythm, which is tiring. When rate cuts arrive, there will be a big breakout, but will the dollar really depreciate that quickly?

View OriginalReply0

SchrodingerWallet

· 4h ago

Another story about "interest rate cut expectations," what's going on, are we about to get cut again? --- Basically, it's a gamble on the Fed's intentions. Who can really predict economic data accurately? --- 5 to 15%... sounds pretty good, but I'm just worried about a reverse move later. --- I've heard this logic so many times, the key is when will they actually cut. --- Dollar depreciation is indeed a catalyst, but going all in now is pretty risky. --- Wait, this article seems to be saying that commodities will rise? I need to rethink. --- Feels like it's always the same spiel, but the results are never the same... --- The core message is one sentence: when the Fed coughs, we catch a cold. --- Then I'll just wait and see what the Fed does in January. --- Hmm... the magnitude of the rate cut is a mystery; just expectations alone are useless.

View OriginalReply0

SocialFiQueen

· 4h ago

When the expectation of rate cuts emerges, commodities are bound to soar. I'm tired of hearing this logic... The real profit comes from those who have already laid their plans in advance. A single Federal Reserve decision can change the entire game. We are just like leeks that follow policies to survive. 5% to 15%? Sounds okay, but the real question is, can we actually get those returns in practice? Weak economic data = expectations of rate cuts? Is the Federal Reserve playing so transparently? Honestly, yes. Dollar depreciation benefits commodities, but only if the depreciation truly happens. Just talking about it is useless. When the global economy is struggling, it might actually be an opportunity. Web3 folks should be happy about that. The key is when the Federal Reserve will really take action. Just talking won't do anything; anyone can say that.

View OriginalReply0