No interest rate adjustment in November, no increase or decrease#非农人数大幅升温 #降息预期
The Fed's interest rate decision has an important impact on global markets, including cryptocurrencies such as Bitcoin. Interest rate cuts usually increase market liquidity, encourage more people to invest in high-risk assets such as cryptocurrencies, and drive their prices up. For example, after the Fed cut interest rates in 2020, the price of Bitcoin rose by 1,600%. Conversely, interest rate hikes reduce liquidity, making high-risk assets such as Bitcoin less attractive. For example, during the Fed's interest rate hike in 2022, the price of Bitcoin fell by about 65%.
Bitcoin is often seen as a tool to fight inflation because its fixed supply makes it less susceptible to currency depreciation. As institutional investors gradually include it in their portfolios, the price of Bitcoin is expected to continue to rise. Although it will be affected by interest rate changes in the short term, in the long run, analysts predict that Bitcoin may reach new highs by the end of 2024, and may even break through $100,000.
Interest rate cuts are good for Bitcoin, while interest rate hikes are not. However, Bitcoin's long-term potential remains strong, especially in the current inflationary and macroeconomic environment, where many people regard it as a safe-haven asset.
