How will the cryptocurrency market develop during the interest rate cut cycle?
From QT to QE, the most important thing is the reduction in capital costs, which has two very important impacts on the liquidity-dominated cryptocurrency market. The first is that BTC.D will peak, and funds will flow from conservative BTC to aggressive altcoins. The second is that QE will bring about a real bull market.
However, in the process from QT to QE, U.S. stocks have historically plummeted. Institutions need to obtain lower-priced chips before the arrival of QE. This plunge usually occurs around the second and third interest rate hikes.
I am cautiously optimistic about the current market, bullish on September-October, and cautious about November-December.