$GT $SOL $LAB Community sharing today: Conan (Solana chain, ending in xBQt), heading to Guangxi for disaster relief, boundless love! 🔥🔥🔥US stock market crash forces Fed to rescue, Bitcoin may usher in new surge engine



According to Woofun AI, Cointelegraph analysis suggests that if the US stock market suffers a severe decline, it will force the Federal Reserve to break decades of convention and intervene. This policy shift could become the core driving force for bitcoin and crypto market rallies.

The US stock market has surged 68% in market value over the past five years, adding approximately $6 trillion in value in 2024 alone. This rapid expansion has led to highly concentrated risks. Data shows that 58% of American households directly hold stocks. If a long-term bear market emerges, the resulting political and economic turmoil would far exceed historical levels, thereby significantly increasing the urgency for regulators to step in and stabilize.

To address potential crises, the Federal Reserve may adopt aggressive measures such as interest rate cuts, asset purchases, or even directly buying ETFs to expand its balance sheet. Historical experience provides strong evidence: in March 2020, bitcoin prices dropped to $7,000, but fueled by the Fed's massive easing policies, they surged to over $60k by April 2021.

Woofun AI compiled data indicating that such liquidity injections directly lower the expected risk premium on risk assets, making highly volatile digital assets more attractive to both institutional and retail investors.

Although inflationary pressures persist, the fundamental logic of liquidity driving asset prices remains unchanged. This projection is not a prediction of a crash but rather reveals the chain reaction that a significant market correction could trigger: stock market declines force central bank action, which then supports a bitcoin rebound through liquidity. In the short term, macroeconomic conditions and central bank decisions remain key variables determining price trends.
#GUSD年化升至3.8% #蓝色起源启动百亿融资 #蓝色起源启动百亿融资
GT1.21%
SOL0.50%
LAB6.70%
BTC1.75%
GUSD-0.07%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 1
  • Repost
  • Share
Comment
Add a comment
Add a comment
MissLing
· 07-10 00:50
You have to take good care of your dad and your father, don’t 🙅! Do 👌! Do 👍! Do 👌! I’m in a meeting—I'll be in Guiyang in one minute, then call you. Is that okay?
View OriginalReply0
  • Pinned