Is the cryptocurrency market really good after the US rate cut?
With the advent of the US government's rate cut, interest rates will fall. People with more assets will choose to solve this problem through risk hedging, which means that the cryptocurrency market will become their investment choice. Due to the uncertainty of Bitcoin, when interest rates fall, it will promote the price of Bitcoin. At the same time, Bitcoin is gradually regarded as a safe-haven asset.
The decline in interest rates after the rate cut will indirectly stimulate more people to invest, and also increase their investment in high-return assets. In addition to the big cake, more people may choose the higher-risk altcoins as investment opportunities. For example, meme coins, which were recognized by more people in the past few months, are also one of them. In the bull market, some big players who are ambushing in the bear market often appear in the bull market to sell meme coins.
With the accelerated assets of spot ETFs entering the cryptocurrency market, market liquidity will become higher and higher, and after the rate cut, when the amount of funds is large, most institutions will flow excess money into the market in order to find high-yield projects.
According to past experience, the market will rebound in October, and there will be more opportunities in the next three months after the rate cut!