Yesterday, the Central Bank of Egypt took a major step, cutting deposit rates from 21% directly to 20%, and loan rates were also adjusted to 21%. Such a sudden rate cut even caught some professional economists off guard.

The underlying logic isn't complicated. Egypt's inflation pressures have finally eased, giving the central bank room to act. Last year at this time, interest rates soared to a historic high, the local currency depreciated by 40%, and the entire economy was under heavy pressure from high interest rates. Now, the rate cut aims to reduce the interest burden on the government and businesses, and also to attract foreign capital back. There’s also a bigger move behind the scenes—seeking $57 billion in international rescue funds, with the rate cut seen as an important signal of reform.

This central bank action actually reflects a larger trend: emerging markets are beginning to enter a rate-cutting cycle. When traditional financial market interest rates decline, the logic of global hot money allocation changes. Where does the money flow? High-growth, high-yield sectors naturally become the new focus.

From the perspective of the crypto market, each global interest rate turning point is accompanied by major asset reallocation. Assets like BTC and ETH, which are highly volatile, often see increased attention. The rate cuts in emerging countries may mean that some funds attracted by high interest rates are starting to look for new yield opportunities.

A few questions worth pondering: Can this wave of rate cuts in emerging markets truly stabilize their economies? Which other countries might follow suit? How will this rate shift ultimately impact the funding landscape of cryptocurrencies? Every major policy shift is a moment for market re-pricing.