$$$$The impact of the Fed's rate cut on the cryptocurrency circle
The Fed announced its first rate cut since 2020 to prevent the slowdown in the labor market, and the Fed cut interest rates by 50 basis points beyond expectations.
The first rate cut in 4 years, the crypto market performed well.
This rate cut has been waiting for four years, and the crypto market has risen across the board. The current price of BTC is about $63,600.
The liquidation of a large number of short positions has not only pushed up the spot price in the short term, but also strengthened the market's bullish sentiment, making the price rebound faster and stronger. This also explains why the prices of major virtual assets such as Bitcoin and Ethereum have risen rapidly after the news of the Fed's rate cut was released.
In an interest rate cut environment, a loose monetary environment is usually accompanied by a flood of liquidity, which provides a relatively favorable growth space for high-risk assets.
This rate cut by the Fed can be said to have brought new hope to the financial market, especially the crypto market. It proves the vigorous vitality of emerging assets.
Today, China's A-shares and commodity futures rose sharply, and the recent MEME market in the cryptocurrency circle is also good. If we enter the money-releasing cycle, there will be many opportunities later. The key is to have enough bullets in hand when the market comes.
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