The US interest rate cut is like a timely rain in the market, instantly rejuvenating! To put it bluntly, the probability of BTC rising after the interest rate cut is quite high! Let's talk about the expectation of the approval of #EthereumETF.
What is the essence of interest rate cut? It makes money "cheaper", reduces borrowing costs, increases the liquidity of corporate and personal funds, and makes them more willing to invest and consume, so the market capital pool expands. These extra funds are like explorers looking for a new continent, and the crypto market, especially BTC, has become a popular choice for them with its unique charm and high liquidity.
Interest rate cuts are often accompanied by a decline in the yield of traditional financial markets. In order to find higher returns, investors turn their attention to high-risk and high-return assets such as BTC. Under the trend of diversified asset allocation, BTC has become a new favorite of many investors.
Looking back at history, whenever the interest rate cut cycle begins, BTC can often deliver a brilliant report card. For example, in early 2020, the Federal Reserve urgently cut interest rates, and BTC took advantage of the situation and soared from the bottom to the sky, with an astonishing increase.
The market is changing in many ways, and it is also necessary to comprehensively consider the global economic situation, policy trends and large capital trends. But in general, interest rate cuts are usually good news for BTC.
If the US interest rate cut comes true, it may be possible to capture a good investment opportunity.