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Bullish

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There are still people who do not understand the logic of "why when #FED interest rate decreases, $BTC interest rate increases";

When the Federal Reserve (Fed) lowers interest rates, the economic effects typically include:

1. **Decline in Credit Costs:** A decrease in interest rates reduces credit costs. This encourages both individuals and companies to borrow and spend more.
2. **Decrease in Savings Incentives:** Low interest rates also reduce the returns on savings accounts at banks. Therefore, people and institutions tend to increase their investments rather than savings.
3. **Decrease in the Value of the Dollar:** A decrease in interest rates may cause the dollar to lose value against other currencies. This could increase inflation in the United States and lead international investors to switch to other assets instead of the dollar.
This may affect the value of Bitcoin because:
- **Turn to Risky Assets:** Low interest rates cause investors to seek higher returns. Declining returns on traditional investment instruments (e.g., government bonds) may lead investors to riskier but potentially higher-yielding assets (e.g., Bitcoin).
- **Attractiveness of Digital Assets:** The depreciation of the dollar may cause investors to turn to alternative assets (such as gold and Bitcoin) as a store of value. Bitcoin is seen as digital gold due to its limited supply and decentralized structure.
- **Liquidity Increase:** Low interest rates and expansionary monetary policies provide more liquidity to the market. This additional liquidity allows investors to invest more in alternative assets such as cryptocurrency.

#powell 's announcement will be tomorrow at 15:30.
It is not investment advice.