According to PANews, the US Federal Reserve announced that it would lower the target range of the federal funds rate to 4.75% to 5%, a 50 basis point cut. This is the first rate cut since 2020 and the magnitude is greater than market expectations. Some analysts believe that the Fed's substantial rate cut this time indicates that it is taking more aggressive monetary easing measures to cope with the potential downside risks of the US economy and strive to achieve a "soft landing" of the economy.

Analysts pointed out that virtual assets have become an important choice for investors seeking high returns due to their high volatility and strong risk appetite, especially in the context of the Fed's continued easing policy. Generally speaking, the short-term volatility of asset prices caused by interest rate cuts depends mainly on the market's interpretation of the interest rate cuts, that is, whether it is a warning signal of potential economic problems or a positive expectation of liquidity injection. The Fed's interest rate cuts usually reduce borrowing costs and release more liquidity into the market, which is often seen as a positive, driving up the prices of risky assets. However, if the market believes that the rate cut is too large or the timing is abrupt, it may suggest that the economy is facing deeper structural problems, such as slowing economic growth, a weak job market or rising inflationary pressures. These factors will cause investors' concerns, leading to fluctuations or even declines in asset prices.