Regarding the issue of interest rate cuts;
Many people have questions. If interest rates are cut, will there be a sharp drop? Because the expectation is forward-looking, the previous surge has overdrawn the expectation of interest rate cuts. After the shoe drops, there should be a sharp drop.
First of all, the effect of interest rate cuts is not immediately apparent. Interest rate cuts will not immediately reflect the inflow of funds into the crypto market. For a long time, we may have been trading the expectation of interest rate cuts.
Interest rate cuts are actually a long-term effect. Long-term cycles must be surges. The crypto market is particularly dependent on liquidity, and liquidity must be surged.
The short-term effect is what happens a few days before and after the interest rate cut. The situation may be more complicated.
In my opinion, if there is no big correction this time, if Bitcoin continues to be around 70,000 and then starts to cut interest rates, it will indeed overdraw the expectation of interest rate cuts. If the interest rate is cut in September, it may really plummet.
But after this big correction, the market once made people feel that it had entered a bear market, and the panic index also soared. So at this stage, a lot of short-term speculative chips betting on interest rate cuts should have been cleared. So if interest rates are cut in September, I tend to think that the possibility of a continuous breakthrough upward is higher.
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