Personally I believe they are related.
The impact of the Federal Reserve's interest rate cut and domestic quantitative easing on the cryptocurrency market is mainly reflected in the following aspects: Short-term impact: I feel that the Federal Reserve's interest rate cut and domestic quantitative easing policies have a positive impact on the cryptocurrency market in the short term, as the market generally regards these policies as beneficial to traditional finance. This led to a small bull market in the cryptocurrency sector starting in late September. However, the rise of A-shares did not boost the value of the cryptocurrency market.
I believe that the rise of A-shares is a short-term negative impact on the crypto market, as the rise of A-shares may lead to a decline in enthusiasm and attention towards cryptocurrencies, causing some funds and institutions to shift from the crypto market to the stock market. Long-term impact: Now, in the long run, both interest rate cuts and quantitative easing are significantly positive impacts, as they will bring in capital inflows and change market sentiment, thus driving crypto prices up. Looking back at history, the crypto market has experienced major price increases after the Federal Reserve cut interest rates.
The uptrend in the cryptocurrency market is gradually being established, but the market is experiencing significant divergence. Some valuable mainstream cryptocurrencies and altcoins may continue to increase in value, while some worthless coins may only increase slightly or even decrease. Market environment: The cryptocurrency market and the traditional stock market are independent trading markets, and their correlation is not strong. Investors in the traditional market may be cautious about the volatility and risk of the cryptocurrency market, while investors in the cryptocurrency market, like me, may not be very concerned about the fluctuations of the traditional market.
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