The Federal Reserve cut interest rates in February. Can the cryptocurrency market really see a surge?
First, the conclusion: Yes!
Interest rate cuts tend to push up the prices of various assets, including real estate and stocks. This is because the cost of capital has fallen, and investors are more willing to take risks to buy assets. In addition, interest rate cuts will also lead to currency depreciation, and the prices of real assets will rise accordingly. In such an environment, the stock market and other investment markets are prone to form a bull market.
Interest rate cuts are intended to stimulate economic activity, and investors may expect the economy to recover, making them more optimistic about corporate profits and market prospects. This optimistic expectation will further drive the market up, thus forming a bull market.