#美联储重启降息步伐 What will happen to the crypto market once the Fed eases monetary policy?
The most immediate change is that money becomes cheaper. When borrowing costs decrease, idle funds in the market flood into riskier assets—Bitcoin is often the first stop. This is easy to understand: when traditional savings yields drop, investors naturally seek higher returns elsewhere. Major coins usually react first, followed by quality project tokens riding the momentum, with both institutional and retail participation noticeably increasing.
But there's a trap here. If the market has already been hyping up expectations of rate cuts, when it actually happens, it might trigger profit-taking—a classic case of "buy the rumor, sell the news." Even more crucial, crypto is inherently a highly volatile sector, and the liquidity brought by rate cuts can amplify these swings. Leverage traders could face liquidation risks if they're not careful. And don’t forget, regulatory stances can shift at any time—a single announcement can disrupt the entire market.
Ultimately, rate cuts do make the market more lively, but excitement doesn’t equal guaranteed profits. Protecting your principal is always more important than chasing windfall gains—it may sound cliché, but it’s the truth.
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RamenStacker
· 5h ago
Don't panic, look carefully at this game.
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GasGasGasBro
· 9h ago
Don't be greedy. Hold steady.
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SybilSlayer
· 19h ago
Time stands undefeated, investment is king.
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MerkleDreamer
· 19h ago
A good market needs to wait for the dust to settle.
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Layer2Observer
· 19h ago
Those who scalp retail investors are about to get busy again.
#美联储重启降息步伐 What will happen to the crypto market once the Fed eases monetary policy?
The most immediate change is that money becomes cheaper. When borrowing costs decrease, idle funds in the market flood into riskier assets—Bitcoin is often the first stop. This is easy to understand: when traditional savings yields drop, investors naturally seek higher returns elsewhere. Major coins usually react first, followed by quality project tokens riding the momentum, with both institutional and retail participation noticeably increasing.
But there's a trap here. If the market has already been hyping up expectations of rate cuts, when it actually happens, it might trigger profit-taking—a classic case of "buy the rumor, sell the news." Even more crucial, crypto is inherently a highly volatile sector, and the liquidity brought by rate cuts can amplify these swings. Leverage traders could face liquidation risks if they're not careful. And don’t forget, regulatory stances can shift at any time—a single announcement can disrupt the entire market.
Ultimately, rate cuts do make the market more lively, but excitement doesn’t equal guaranteed profits. Protecting your principal is always more important than chasing windfall gains—it may sound cliché, but it’s the truth.