let's rewind to my second cycle, when the last round of rate cuts began.
Back then, everyone was buzzing about how altcoins were poised to outperform Bitcoin, promising astronomical returns.
Now, as we approach the potential rate cuts in mid-September, I want to remind you that todayâs environment is even more uncertain than it was in 2019, just before the pandemic hit.
Weâre facing geopolitical tensions, shaky labor markets, liquidity challenges among major banks, and political instability in the U.S.
These factors could lead to more severe market downturns than what we saw in 2019. If you look at the first image, youâll notice how the market reacted after the initial rate cutâit was a steady decline, culminating in a major drop when COVID struck.
As for altcoins, take a glance at the second image of Bitcoin dominance. You'll see it peaked right as the rate cuts were introduced.
Remember, the altcoin rally thatâs being hyped will likely only materialize once the Fed shifts back to quantitative easing. Stay cautious out there.
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