2026-01-11 13:25:35

The Federal Reserve suddenly shifts course, causing turbulence in the global markets—On January 11th, many investors' holdings face an unprecedented test.

What is hidden behind the numbers? The December non-farm payroll data was released, showing only a 50,000 increase in jobs, far below expectations, yet the unemployment rate surprisingly fell from 4.3% to 4.4%. This contradictory data caught the market off guard. Expectations of rate cuts also cooled down, and the previously optimistic easing cycle appears to be under reevaluation.

Even more outrageous is the unprecedented escalation of policy disagreements. Three dissenting votes appeared within the Federal Reserve, and the dot plot indicates a serious split in the committee's opinions. With Powell's term ending soon, the selection of the new chair has become a focal point for the market. This uncertainty itself constitutes a form of risk.

Although U.S. stocks hit new highs, the underlying capital flows are subtly changing—leading tech stocks are gradually losing their dominance, while materials and utilities stocks are becoming new favorites. This rotation implies a re-pricing of economic prospects. Meanwhile, emerging markets attracted $256 billion in inflows, with Chinese assets drawing particular attention. This gives ETH and other cryptocurrencies a space for imagination: Could they also ride this wave of emerging market momentum?

Regarding liquidity, the Fed has paused its balance sheet reduction, but the technical bond purchase measures that followed have opened another form of liquidity supply. Inflationary pressures still persist, and Fed member Bostic even warned that inflation could still exceed the 2.5% target in 2026, indicating that policy adjustments are far more complex than initially thought.

The repeated expectations of rate cuts, intensified political struggles, and accumulating fiscal pressures—these factors intertwine, likely prolonging the era of high volatility. In such an environment, rational position planning becomes especially crucial. Whether ETH can ride the waves depends on how investors interpret the opportunities and risks hidden within this storm.

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AltcoinHunter

· 7h ago

Bitcoin is tricking me into selling again, really, when I saw those three opposing votes I knew this show wasn't over Emerging markets attracted 256 billion? If Chinese assets rise, why can't ETH fly? The logic is consistent, everyone Policy splits are the most frustrating, even more painful than a direct rate hike. At least with a rate hike, I can buy the dip. Now? Who knows who Powell will sit with next From a technical perspective, the rotation of materials stocks and utilities is institutions rebalancing, indicating they are also scared, but I’ve already gone all-in [laughing and crying] Liquidity is there, inflation is still present, and uncertainty is even greater. This is the high-volatility environment I love most, brothers. Those selling are the ones without faith

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NewDAOdreamer

· 21h ago

The Fed's recent actions really mess with people's mindsets. The rate cut expectations come and go, who can handle that... Emerging markets attracting 256 billion is a signal, it feels like crypto should have a chance too. Policy division is so severe, Powell is about to leave, and whoever the new chair is will have to start from scratch, it's troublesome. Tech stocks are stepping back? Those institutions are really rebalancing, not just a fake move. Liquidity-wise, they paused balance sheet reduction but are doing technical bond purchases. It seems the Fed hasn't even figured it out themselves haha. In this high-volatility era, it will continue. Positions must be carefully planned; going all-in is a death wish.

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DAOdreamer

· 01-11 13:55

Oh my, the Fed's move this time is really incredible. Not cutting rates when they said they wouldn't, the market is being played around haha Rate cuts are cooling off, but why hasn't ETH taken off yet? Emerging markets are attracting capital, what are we waiting for here? Inflation will still be above 2.5% in 2026, and we don't even know what Powell's successor will look like. This uncertainty is probably the biggest trap. Tech stocks are retreating while materials stocks are rising, it feels like funds are quietly shifting positions. Does anyone understand this rotation? Position management really needs to be well planned, or in this high-volatility environment, you'll get liquidated in no time. I'm currently holding cash and waiting. Funds are flowing into emerging markets. China's assets are being favored, which is a signal for crypto, right? The 50,000 jobs data is really garbage, and the unemployment rate is moving in the opposite direction. This data is so absurd. There are three dissenting votes inside the Federal Reserve, the division is even more chaotic than the crypto community. Who can lead the way? 256 billion flowing into emerging markets. If we didn't catch this wave, it would be such a pity. Has anyone bottomed out?

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FUD_Whisperer

· 01-11 13:54

Weak non-farm data, unemployment rate even rose inversely, this logic is ridiculously crazy haha --- Powell is about to be replaced, whoever the new chair is, it's a trap. The Fed has three votes against, the level of division is truly remarkable --- Tech stocks have lost their spotlight, materials and utilities are taking off, funds are quietly shifting their positions, everyone --- Again, technical bond purchases and rate cuts are repeated. I just want to ask, does the Federal Reserve even know what they are doing --- 256 billion flowing into emerging markets, ETH is eyeing Chinese assets, it would be good to catch this wave --- High volatility must continue, positions need to be carefully calculated, if you bet wrong, just wait to be wiped out --- Inflation has been over 2.5% for 26 years? This warning is quite harsh, money is really becoming less valuable --- The new high in US stocks looks glamorous on the surface, but behind the scenes, they are re-pricing, a typical fake prosperity market --- The divergence of the dot plot itself is a risk, the market fears this kind of uncertainty the most --- The rate cut cycle is over, liquidity still exists, but how to use it is the real question. All depends on one's own ability

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BottomMisser

· 01-11 13:40

Unemployment rate has dropped? The data is really outrageous, how is this calculated? Interest rate cut failed, my position is going to suffer again. Fed internal conflicts, this is awkward, who will save my ETH? Tech stocks are not leading the way anymore? Where will the funds go? Chinese assets are attracting capital, can our coins benefit? I'm a bit hopeful. Inflation will last until 2026? Truly despairing. High volatility continues to stir things up, my heart can't take it anymore.

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MissedAirdropAgain

· 01-11 13:33

The Fed's recent moves are truly incredible, with data becoming more and more outrageous. Powell is about to step down; the new chair will be chosen based on political trends, which is the real black swan. Emerging markets are all bleeding, just waiting for ETH to take off as well. Honestly, this high volatility is going to last for a long time; you need to watch your positions carefully. No more rate cuts, but inflation still needs to continue? It's so frustrating. Funds are rotating so quickly; aren't tech stocks still attractive? With this set of liquidity measures, who can withstand it? It feels like opportunities and risks are two sides of the same coin; you can't tell which will come first. Will inflation still be above target in 2026? Then our money will just keep shrinking. This pace makes me feel like stockpiling coins.

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