The recent sharp market fluctuations are partly due to the market's expected reaction to the approaching interest rate cut cycle. Although interest rate cuts are theoretically good news for the market, there is currently a view that due to major problems on the demand side, the global market may lack sufficient space to absorb additional capital, which may result in interest rate cuts that may not be as effective as in the past in stimulating the economy.

For example, domestically, even if interest rates are lowered, if there is a lack of attractive investment opportunities, funds may only circulate within the banking system and fail to effectively flow into the market to drive economic growth. Therefore, the positive impact of interest rate cuts may be limited, and the market recovery may require the support of more other factors, such as restored confidence, increased consumption and investment, etc. $ETH