「How does interest rate reduction help drive the BTC super bull market?」
The main impact of interest rate cuts on BTC is not to judge how the US dollar is performing; we are people from the BTC community.
In the previous two articles, we discussed why "a super bull market is about to start," and under the proof that there are no whales in the entire network's BTC data, institutions like MicroStrategy, TOM LEE, and Cathie Wood have all been calling for BTC to reach 250,000.
Next, how will the upcoming interest rate cuts help BTC?
The biggest benefit of interest rate cuts for BTC is that there are a large number of leveraged loan investors in the cryptocurrency space. Many are taking out loans with dozens of times the amount by mortgaging real estate.
Interest rate cuts can lower the borrowing costs for investors and allow them to accumulate BTC in large quantities or set liquidity.
In addition to accumulating BTC, they also rely on providing liquidity in BTC after taking out loans to earn interest rate spreads.
Therefore, since the decline in the cryptocurrency market on October 11, it has been shown that many investors have been significantly deleveraging, and the deleveraging has not caused a crash above 70,000.
This indicates that the market's leverage has been cleared, and it further indicates that MicroStrategy's Saylor's astonishing statement that BTC can be bought starting with 8 is indeed true.
Once the interest rate cut is announced, a large number of non-institutional retail investors will not slowly pressure the market like institutions waiting for retail investors to sell BTC for acquisition. For retail investors, it's a direct rush into the market.
Thus, the feeling of such a situation directly conveys the power of the super bull market.
