Rate cuts have historically triggered a series of market dynamics:

1⃣️Increased liquidity: Interest rate cuts often lead to the release of funds, thereby increasing overall market liquidity.

2⃣️Borrowing costs decrease: After interest rates are lowered, the cost of corporate and personal loans also decreases.

3⃣️Improved risk appetite: In the context of lower interest rates, investors are more inclined to pursue higher returns, thereby increasing investment in risky assets.

4⃣️Cryptocurrency prices rise: Interest rate cuts may stimulate capital inflows into the cryptocurrency market and push prices up.

Judging from past experience, interest rate cuts have a positive effect on market sentiment and price trends, especially in the cryptocurrency market. During the market turmoil caused by the epidemic in 2020 and the subsequent recovery process, the Federal Reserve's interest rate cuts and quantitative easing policies injected a large amount of liquidity into the market, promoting a significant increase in the value of cryptocurrencies such as Bitcoin.