The bull market in the cryptocurrency circle needs an engine, but the bull market in BTC relies more on the support of liquidity.
Since the first rate cut by the Federal Reserve in September, although the balance sheet reduction is still ongoing, the Federal Reserve said that this will offset the liquidity released by the rate cut, so it is currently in the neutral interest rate range. However, the general trend of rate cuts and quantitative easing is irreversible. With the end of the US election, safe-haven funds in the market have begun to flow back, injecting more liquidity into the market. It is expected that at the Federal Reserve's interest rate meeting in December, interest rates may be reduced by another 0.25 percentage points. At the same time, it may also announce a slowdown in balance sheet reduction or even an end to balance sheet reduction, which will mark the official start of the quantitative easing cycle, thereby greatly boosting market confidence.
In the long run, interest rates may continue to decline, and it is expected that they may fall to 3.25% or even lower by 2025. By then, more liquidity will continue to flow into the market, and both the stock market and BTC are expected to continue to rise. As for when the peak of the bull market will come, it is difficult to accurately predict, but once the quantitative easing cycle ends and the M2 money supply begins to shrink, it will be a signal that needs to be vigilant. At that time, don't rely too much on market fluctuations, and it is wise to take profits in time.
Click on the avatar to view the homepage and follow me. I am a free exchange community that shares various potential currencies every day, guides you to ambush various 100x currencies, and allows you to make a lot of money in this bull market.