The upcoming rate cut will really drive the market up?

Based on history and logic, we will give you an in-depth analysis:

Comparing the stock market trends of the three rate cut cycles in the United States in the past 20 years, we can sort out the logic. The most recent rate cut occurred in July 2019, when the US stock market rose amid doubts about the trade war and the global economic slowdown, but in February 2020, due to the spread of the epidemic, the US stock market and the cryptocurrency market fell almost 90 degrees vertically and experienced multiple circuit breakers.

The current market performance does not show signs of recession, the unemployment rate and non-agricultural data are still controllable, and the speech of Federal Reserve Chairman Powell is also leading the market to believe that the recession has not yet arrived.

In addition, the expectation of easing in the fourth quarter continues to increase, coupled with the uncertainty brought about by the US election. In the medium and long term, as the Fed's expectations of rate cuts increase and the US dollar weakens, Bitcoin's attractiveness as a safe-haven asset still exists, so there is no need to worry too much about the market crash.

Summary: The last rate cut cycle shows that the cryptocurrency market is only at risk of a big drop in the event of a recession!