As the saying goes, learn from history.

First of all, we should point out that we are concerned about the entire interest rate cut cycle, not just a single interest rate cut. For example, the interest rate is cut by 25 basis points this month, 50 basis points next month, and may be further cut by 25 basis points thereafter. The purpose of the interest rate cut is to reverse the economic downturn, but this is not a short-term effect, but a cycle that gradually forms through a series of interest rate cuts.

Take the Fed’s most recent rate-cutting cycle, which began in July 2019 and ended in April 2020. During this period, the price of Bitcoin continued to fall from $13,000 to $3,800.

This shows that interest rate cuts do not necessarily lead to increases. Some institutions even believe that the interest rate cut cycle represents the trough of the economy, during which the market is less likely to rise directly.

Therefore, I think it may not be a wise move to buy heavily even if the interest rate is cut in September.

As for how cutting interest rates can have a positive impact, here is a brief explanation: The effect of cutting interest rates is similar to an "economic prescription". The effects of the medicine are often not immediate, and it takes some time to see significant improvements. The market recovery usually takes several months, maybe 5 to 8 months.

Therefore, I think a more reasonable strategy is to gradually buy at low levels during the interest rate cut cycle.

We can see that after the interest rate cut cycle ended in April 2020, the price of Bitcoin rose from US$10,000 to US$60,000. This is the long-term positive effect brought about by the interest rate cut cycle.

Bitcoin, Ethereum, and altcoins are falling, but I’m no longer following them. This is a good trend and a good signal.

Although Bitcoin will not rise, there are still many opportunities in the MEME and inscription tracks at present. They rise and fall quickly, so it depends on whether everyone can seize the opportunity.

MEME and Inscription Tracks:

$WIF

The SOL ecosystem is the most active among the big exchanges every time the market comes, and its activity exceeds that of BOME

In terms of the logic of strength, the increase of wif is better. There are many big households in the community and the main players are rich. Inscription produced a wave of wealth effect from October to February last year, and it has been washed for 7 months so far.

$sats and $pizza

Both of them have a lot of expectations for empowerment in inscriptions, and their application scenarios are also rich, thanks to the support of unisat. In the next stage of the cottage market, the two are expected to become the strongest currencies in the inscription sector.