#ETH走势分析 Fed cuts interest rates, will the crypto market follow the trend? This matter has to be broken up.
Let's look at a few key factors first. What is the first effect of interest rate cuts? Liquidity is abundant, and the money that was originally lying in the current account to eat interest has to find a place, and some of it will definitely flow to risk assets. The opportunity cost of cryptocurrencies has decreased – there is no risk-free interest there, and its appeal naturally increases. The dollar also has to be paid attention to. Interest rate cuts usually drag down the US dollar index, currency prices are relatively cheap, and the purchasing power of international investors increases, which will push up demand. At the same time, in a low-interest rate environment, investors' risk appetite will rise significantly, market activity will soar, and funds will begin to flow from conservative allocation to aggressive allocation. The response varies greatly from one scenario to another. If it is a soft landing preventive interest rate cut, risk assets will generally strengthen, $BTC such often perform well. But if the recession forces interest rate cuts, there may be irrational selling in the early stages, and panic will dominate - but once the easing policy continues to be released, funds will return reflexively. When there is a recession and inflation, the anti-inflation properties of cryptocurrencies have become a sweet spot. There is also a pitfall: the market overdrafted expectations in advance, and when the interest rate cut was really officially announced, it was a selling point, and the price was directly corrected. Or the Fed's statement is not so dovish, the market is disappointed, and the decline follows. Friends who are optimistic about $ETH, $BTC, and $ZEC can pay more attention during this period and grasp the rhythm. It's not a blind guess, but based on policy logic, don't miss the opportunity in vain.
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#ETH走势分析 Fed cuts interest rates, will the crypto market follow the trend? This matter has to be broken up.
Let's look at a few key factors first. What is the first effect of interest rate cuts? Liquidity is abundant, and the money that was originally lying in the current account to eat interest has to find a place, and some of it will definitely flow to risk assets. The opportunity cost of cryptocurrencies has decreased – there is no risk-free interest there, and its appeal naturally increases.
The dollar also has to be paid attention to. Interest rate cuts usually drag down the US dollar index, currency prices are relatively cheap, and the purchasing power of international investors increases, which will push up demand. At the same time, in a low-interest rate environment, investors' risk appetite will rise significantly, market activity will soar, and funds will begin to flow from conservative allocation to aggressive allocation.
The response varies greatly from one scenario to another. If it is a soft landing preventive interest rate cut, risk assets will generally strengthen, $BTC such often perform well. But if the recession forces interest rate cuts, there may be irrational selling in the early stages, and panic will dominate - but once the easing policy continues to be released, funds will return reflexively. When there is a recession and inflation, the anti-inflation properties of cryptocurrencies have become a sweet spot.
There is also a pitfall: the market overdrafted expectations in advance, and when the interest rate cut was really officially announced, it was a selling point, and the price was directly corrected. Or the Fed's statement is not so dovish, the market is disappointed, and the decline follows.
Friends who are optimistic about $ETH, $BTC, and $ZEC can pay more attention during this period and grasp the rhythm. It's not a blind guess, but based on policy logic, don't miss the opportunity in vain.