Recently, many people have asked me: Will the cryptocurrency market see a surge after the Fed cuts interest rates in September? My analysis is: Although the market is likely to rise, it remains to be seen whether it will see a surge.
First, although the market has responded positively to recent positive factors, historical patterns show that these short-term rises are often accompanied by price declines, so this possibility cannot be ruled out.
Second, after the implementation of the interest rate cut, bank capital outflows are inevitable, and financial markets, including the stock market and the cryptocurrency market, are likely to become the preferred destination for these funds. Considering the cryptocurrency market's extensive global influence and huge user base, it is expected to become an important beneficiary of capital inflows.
In addition, compared with the trend of US stocks constantly setting new highs, other stock markets are currently at a relatively low position, which may attract capital attention and investment, especially high-quality companies in the artificial intelligence industry.