There's an interesting trend worth paying attention to — the new Federal Reserve Chair in the US is about to be confirmed, and this chair is an advocate of interest rate cuts. At the current pace, the rate cut cycle shouldn't be too far off. Market expectations are that the federal funds rate will gradually approach 1%, which will have a significant impact on the cryptocurrency market.
Why is this related to BTC, Ethereum, and other assets? Simply put, it's about liquidity. In a low-interest-rate environment, returns in traditional finance decline, and funds will seek new outlets. Historical experience shows that loose monetary policy often boosts demand for risk assets, and high-volatility assets like cryptocurrencies naturally attract attention.
Of course, this isn't certain — it depends on the specific implementation progress and the global economic situation. But logically speaking, the window for rate cuts is opening, and the reshaping of the entire asset allocation landscape is already underway.
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GoldDiggerDuck
· 1h ago
Once the interest rate cut cycle begins, where does the capital flow to... It's still high-yield assets like the crypto space, waiting for liquidity to bring in profits.
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StableNomad
· 12-18 20:11
nah tbh the "rates going to 1%" narrative reminds me of UST in May—everyone convinced of the same thing right before it doesn't happen. statistically speaking correlation coefficients between fed policy and btc aren't what ppl think they are when you actually run the numbers
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NftRegretMachine
· 12-18 05:37
The interest rate cut is here, and there's nowhere to put the money. It's time for BTC to eat.
There's an interesting trend worth paying attention to — the new Federal Reserve Chair in the US is about to be confirmed, and this chair is an advocate of interest rate cuts. At the current pace, the rate cut cycle shouldn't be too far off. Market expectations are that the federal funds rate will gradually approach 1%, which will have a significant impact on the cryptocurrency market.
Why is this related to BTC, Ethereum, and other assets? Simply put, it's about liquidity. In a low-interest-rate environment, returns in traditional finance decline, and funds will seek new outlets. Historical experience shows that loose monetary policy often boosts demand for risk assets, and high-volatility assets like cryptocurrencies naturally attract attention.
Of course, this isn't certain — it depends on the specific implementation progress and the global economic situation. But logically speaking, the window for rate cuts is opening, and the reshaping of the entire asset allocation landscape is already underway.