Everyone is talking about interest rate cuts, but many people don’t actually understand why they happen. Does interest rate cuts really have a big impact on the cryptocurrency market?
First of all;
There are defensive interest rate cuts and passive interest rate cuts.
Passive interest rate cuts will cause financial markets to plummet, because the economy is already in a precarious recession, and it will be even worse if interest rates are not cut.
So the expectation of market transactions after the interest rate cut is an economic crisis (hard landing).
The Federal Reserve is also exploring in practice, and not every interest rate cut is a passive interest rate cut.
If the economy can land softly, the expectation of transactions will not be an economic crisis.