In history, the U.S. has fallen sharply every time it cut interest rates six times. This is the seventh time. If the U.S. stock market plummets, can the currency circle be immune?
In U.S. history, multiple interest rate cuts have often been accompanied by market turmoil, especially sharp corrections in the stock market. Faced with the current seventh interest rate cut, U.S. stocks have experienced significant declines. So, can the currency circle be on its own this time?
The answer to this question is not absolute and depends on a variety of factors, including but not limited to the global economic situation, investor sentiment, policy changes, and the intrinsic dynamics of the cryptocurrency market. Historically, there does exist some co-movement between the cryptocurrency market and traditional financial markets, especially when risk appetite declines, cryptocurrencies are often affected as well.
However, the cryptocurrency market also has its own uniqueness, such as technological innovation, community drive and other factors, which may weaken the impact of the external economic environment on it to a certain extent. In addition, as the cryptocurrency market matures, it sometimes becomes out of sync with the traditional market.
Overall, while the cryptocurrency market is likely to be affected by the decline in U.S. stocks, it may also show different trends due to its own characteristics.