At the beginning of 2024, the market expected the Fed to cut interest rates six times throughout the year, and cryptocurrencies subsequently rose to new highs.

In April, the six interest rate cuts were reduced to one or two, and the market fell.

At present, the crypto market relies on the mainstream market, and the corresponding monetary policy will give rise to the same direction.

At present, after the initial discussion of interest rate cuts, it is waiting for the confirmation of the interest rate cut time to enter the bull market in the era of monetary easing (Citi, Goldman Sachs, JPMorgan Chase, and Morgan Stanley believe that the Fed will cut interest rates on July 31).

Historically, cryptocurrencies are generally relatively flat in the summer.

In a high-interest environment, the current size of US money market funds has reached new highs many times, rising to $6.03 trillion.

Once the interest rate cut occurs, the interest rate will drop from 5.5% to 2.5%. Money market funds will look for new investable targets, such as risky assets, gold, and crypto assets, which will once again give rise to better market conditions.