Now South Korea is going to cut interest rates, let me talk about how to respond, all practical advice!
Previously, the interest rate hike in Japan directly shattered my $BTC and $BNB ,
In simple terms, the interest rate hike in Japan is just siphoning off money, the yen became more valuable, and many people withdrew their money from the cryptocurrency market to buy yen assets, how could cryptocurrency prices not fall? But South Korea's interest rate cut is different; this is about pumping money — with lower interest, the public's idle money has nowhere to go, surely many will rush into the crypto market to gamble a bit, which is definitely good news for the spot holdings we have!
But let's not get carried away! Here’s what I plan to do:
1. Don’t increase positions randomly: Hold onto the BTC and BNB that are currently stuck, and if it really rises after the interest rate cut, first take out the part that is at a loss, don’t be greedy thinking about doubling; the new position should be at most half of the total money, and leave the rest for emergencies, who knows if the global market will have issues.
2. Keep a close eye on BNB: Compared to BTC, I’m more optimistic about BNB! South Koreans are big customers of Binance, and the money from the interest rate cut will likely first flow into the BNB ecosystem, the potential for growth is definitely greater than BTC, I plan to hold onto the BNB that is stuck for a few more days, waiting for a decent rebound.
3. Don’t bet on one-sided rises: This good news is local to South Korea; if U.S. stocks fall and the Federal Reserve says it will raise interest rates, then this bit of good news is not enough! I have already set a stop-loss; if BNB and BTC don't rise and instead fall, breaking the recent low, I’ll cut my position and run, not wasting time with it.
In summary: The interest rate cut in South Korea is an opportunity for recovery, but don’t treat it as a springboard to get rich, take the gains and protect your capital is the key!
