Against the backdrop of the Fed’s rate cut in September, whether the cryptocurrency market will usher in a round of skyrocketing is a question worth exploring:
First, although the market has seen a short-term rise under the recent favorable stimulus, it is often followed by a decline. This pattern may reappear. However, the interest rate cut in September is different from the past and may bring new market dynamics.
Second, once the interest rate cut is implemented, banks’ funds will seek new investment channels, and the financial market is undoubtedly the first choice. In addition to the stock market, the cryptocurrency market may also become a new destination for funds. At present, the cryptocurrency market has an increasing influence worldwide, with more than 600 million participants, making it an ideal place for capital flow.
Finally, although the US stock market continues to hit new highs, it is still at a relatively low position in other stock markets, which may attract the attention of capital. In particular, high-tech industries such as artificial intelligence may receive more financial support as a result, thereby promoting the activity of the entire market.
To sum up, although it cannot be asserted that the cryptocurrency market will definitely usher in a surge, the interest rate cut may become a new vitality and opportunity for the market.
