We talk about interest rate cuts every day. Many fans may not understand what interest rate cuts mean and why they will affect the cryptocurrency circle. Let me put it simply. Interest rate cuts refer to banks using interest rate adjustments to change cash flow.

When banks cut interest rates, the income from depositing funds in banks decreases, so interest rate cuts will cause funds to flow out of banks, and deposits will become investments or consumption, resulting in increased liquidity. Where will funds go if they flow out of banks?

In addition to normal consumption, there is investment, and investment may choose the stock market or the cryptocurrency market. After knowing the impact of interest rate cuts on the cryptocurrency market, let's interpret the Fed's interest rate cuts.

The much-anticipated Fed interest rate cut data is here, but the market is completely opposite to what everyone predicted. U.S. stocks fell, gold fell, and BTC fell. The US dollar rose against the trend. Why did this happen? Most of the time, it was because the interest rate cut did not meet market expectations. When the expected interest rate cut was implemented, BTC did not rise, so the next market would continue to bottom out. $BTC