Understand in one article how significant the impact of the Fed's interest rate cuts on the crypto world is.

First, let's talk about whether the interest rate cut has any impact.
1.
There must be an impact! Those who ask this question are basically not people from the crypto world.
If you are in the crypto world, you should know that before the interest rate cut in September is fully implemented.
Every fluctuation in the crypto world is influenced by interest rate cut news.
501 big drop, 618 big drop, 705 big drop, 805 big drop, 904 big drop
Every time, the market releases data on the fundamentals of the US economy.
Then the Fed subtly makes dovish or hawkish remarks.
Master Bao has taken the art of language to the extreme.
The first half of the sentence releases a dove, the second half releases an eagle.
Language puts down doves, actions put down eagles.
In short, after a lot of cloud and mist, the market seems to understand yet not understand.
Everyone's expectations for interest rate cuts fluctuate.
This expectation directly drives the highs and lows of the crypto world, like a roller coaster.
Two,
How exactly does it affect?
Cryptocurrency is divided into two types.
Bitcoin, which we commonly refer to as a big pancake, BTC
The second type is commonly known as altcoins. The leader of altcoins is Ethereum, or ETH.
The reason Bitcoin is classified as a separate category is that it accounts for 50-60% of the entire crypto world market capitalization.
At this moment of writing, Bitcoin's market share is approximately 57.5%. So we categorize Bitcoin separately.
As a discussion.
Bitcoin has no fundamentals. Initially appearing as a P2P tool, no one uses Bitcoin for transactions now.
Transfer. The reason is simple, it is too expensive.
But Bitcoin, as the value consensus of global crypto world participants, is the anchor of value in cryptocurrencies.
What factors affect the price of Bitcoin?
The most direct impact is the liquidity of global capital.
We often use the M2 of the global capital markets to describe the liquidity of the global market.
Basically, it's like this.
Of course, if you don't study the overseas market, how to find and look at this chart, you don't need to worry about it.
You only know that the peak of global liquidity is the peak of BTC prices, and that's it.
In short, you just know that the global M2 directly reflects global liquidity.
And the global liquidity directly affects the price of Bitcoin, that's it.
So how does the Fed's interest rate cut affect the price of Bitcoin?
Smart leeks, you must know
The Fed's interest rate cuts will directly impact global liquidity.
Why does the Fed's interest rate cut affect global liquidity? Can it be quantified?
Of course, it can be approximately quantified.
Approximately, we will use the M2 of the four countries: the US, Europe, China, and Japan, to characterize.
global liquidity,
It is also very accurate.
I won't show it to everyone here.
Three,
Will Bitcoin reach a new high?
This is an inevitable event!
But it is not immediate or right away.
With the continuous release of global liquidity, it is expected that in 2024,
The Fed lowered interest rates by 75 to 100 basis points.
In 2025, the Fed will lower interest rates by 75 to 100 basis points.
By 2025, the global liquidity could potentially release 600 to 800 billion USD (this number has not been reported anywhere).
It's calculated by myself, please let me know before citing it.
The liquidity of traditional capital markets will continuously flow into the crypto market.
Drive the price of Bitcoin higher
It is almost certain that once we break through the previous high of 124,000, something will happen.
And it will be before the end of 2025.
four
I won't explain the finer details of the bull and bear cycles.
This answer is not meant for experts either.
Mainly for novice investors to provide a popular science explanation,
Don't argue too much. #打榜优质内容#