Has the cryptocurrency market surged due to the U.S. interest rate cuts?

Since the surge following the ETF approval at the beginning of the year, it has been hovering around 60,000. After the conference, it began to plummet again due to the uncertainty of the elections, and those so-called "VC coins" have been in freefall.

Which institutions are buying ETFs? Many sovereign funds, public funds, and family trusts have allocated a portion of their assets into BTC.

First, the expectation of U.S. Federal Reserve interest rate cuts leads to dollar depreciation. Bitcoin, having proven its digital gold properties over the past 15 years, can outpace inflation;

Second, with endorsements from top institutions like BlackRock and Vanguard, there is sufficient compensation capability if the coins are truly stolen, unlike the direct bankruptcy seen with FTX.

So far this year, most altcoins have not outperformed Bitcoin, holding a market share of up to 60%; meanwhile, old money only trusts BTC, and large institutions have near-unlimited compensation capability.

Who are the super institutions in the cryptocurrency market? Undoubtedly, that would be the universe's largest exchange, Binance. CZ was fined over 4 billion USD by the U.S. but it didn’t cause any serious damage, considering that 4 billion has exceeded the FDV of many projects. Although Binance has also listed several VC coins with its current listing strategy, it is true that whenever a coin is announced for listing on Binance, it is bound to surge, with the previous example of NERIO being a living testament.

Now, the popularity of NERIO is also starting to decline, so it is crucial to have continuously outputting projects to stabilize coin prices, but there is no hope if the market situation is poor.

Fortunately, after accepting regulatory scrutiny from the U.S., Binance proved that it did not misappropriate user funds, and CZ has confirmed this point. Binance will also have a fresh start. Therefore, conducting research is extremely important before starting to stake projects or invest, as understanding a project's "components" can play a decisive role in its profitability later on.