Compared with the interest rate cut cycle in 2019-2020, Bitcoin may experience similar twists and turns and fluctuations, and may experience a wash-out phenomenon, and even the risk of a second retracement.
The first interest rate cut was launched on July 31, 2019, and this interest rate cut cycle is also the first interest rate cut cycle experienced by Bitcoin and the crypto market.
The trend of Bitcoin price, Nasdaq index and gold price is shown in the figure below.
Before the last interest rate cut (March 15, 2020), Bitcoin experienced the well-known "3.12" crash, and the global market also suffered a severe impact.
However, the Federal Reserve had already lowered interest rates to the range of 0.00%-0.25% at that time and implemented a large-scale quantitative easing policy. In the end, these liquidity overflowed into the crypto market, triggering the bull market in 2021.
For more market information and strategies, follow my personal main page to find me, and share strategies for spot and contract trading for free.
