"Investment risk increases as the cost of capital decreases and liquidity increases. Bitcoin (BTC) and other cryptocurrencies often benefit from this condition. However, why is the crypto market not reacting positively when US inflation seems to be under control?

- Interest rate cuts affect corporate profits and the real estate market.

- The US Fed monitors the labor market, inflation and USD value to adjust policy.

- US inflation has recently fallen, the unemployment rate is 4% and personal income is rising, leading the S&P 500 to reach an all-time high on June 28.

- The overall cryptocurrency market is down from its 2024 peak on March 14.

Cryptocurrencies often underperform when the USD is strong. However, there remains much uncertainty about how the economy and the dollar will perform if the Fed chooses an expansionary monetary policy. Therefore, the possibility of Bitcoin and cryptocurrency price increases after 2024 should not be ruled out.

Let's discuss this issue in the comments section!#Bitcoin#Cryptocurrency #Inflation"