【Federal Reserve Rate Cuts are a Double-Edged Sword in the Crypto Market】
【Positive Factors】
1. Rate cuts reduce borrowing costs, releasing more liquidity, and funds may shift from traditional low-yield assets to the high-risk, high-return crypto market.
2. Rate cuts lead to a depreciation of the dollar, causing cryptocurrencies priced in dollars to appreciate; assets like Bitcoin, regarded as 'digital gold,' are expected to serve as a hedge against inflation and fiat currency depreciation, attracting global investors.
3. Under loose monetary policy, risk appetite increases, and investors are more willing to chase high-volatility crypto assets, driving short-term gains and trading activity.
1. If the market worsens or concerns about economic recession intensify after the rate cut, the crypto market may experience severe corrections, liquidation waves, and liquidity panic, exacerbating price volatility.
2. If the crypto market experiences excessive speculation or bubbles due to rate cuts, it may trigger regulators to strengthen scrutiny, curbing some capital inflow.
3. If the rate cut stems from concerns about economic recession, a deterioration in the real economy may weaken overall investment confidence, leading to the potential sell-off of cryptocurrencies as high-risk assets, which may come under pressure along with the stock market and other risk assets. #美联储降息 #美联储FOMC会议 #美SEC推动加密创新监管 #加密市场观察
