2025-12-12 05:20:51

What happens when the Federal Reserve cuts interest rates? In fact, it's not that simple for the crypto market.

Many believe that rate cuts mean a bull market is coming, but the reality is much more complex. Lowering interest rates does indeed release more liquidity and push down risk-free yields — at this point, money begins to look for alternatives. Risk assets suddenly become attractive, and cryptocurrencies like Bitcoin often benefit.

In short, rate cuts create an environment that is friendly to risk appetite. But the impact pathway is multi-dimensional, not a simple cause-and-effect relationship. Market sentiment, macroeconomic environment, and regulatory developments all play a role simultaneously.

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GasFeeAssassin

· 12-12 14:01

Lowering interest rates ≠ Bull market. We've seen through this trick a long time ago. Liquidity easing doesn't necessarily save the crypto market. Don't be naive—regulators' words can make everything pointless. Where the money flows still depends on the market sentiment. The Federal Reserve is playing a heartbeat game. Wait a minute, could this be a prelude to another rug pull? That's right, a multi-dimensional approach is truly important. However, retail investors will never see it clearly. The real opportunity lies in the chaos. It's still early.

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AirdropATM

· 12-12 05:51

Lowering interest rates ≠ necessarily a bull market, this logic is too naive, the real driving forces are those invisible hands. That said, during liquidity easing, Bitcoin does tend to attract more funds, but the question is when will the regulatory threshold loosen? Instead of guessing how rate cuts will impact, it’s better to watch the movements of the US stock market and the dollar, those are the true indicators. Rate cuts are a condition but not a sufficient one. Do the current buyers really understand what they are betting on? Ultimately, it still depends on market sentiment; fundamentals are just a cover.

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MEVvictim

· 12-12 05:50

Cutting interest rates ≠ necessarily a bull market. That's correct, but we all know the market is this crazy. The promised liquidity friendliness, but as soon as regulation tightens, everything becomes pointless. Wait, is it time to buy the dip again? They keep saying the causal relationships are complex, but it's just hype. Lowering interest rates is possible, but it depends on how US inflation moves, otherwise it's just talk on paper.

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CoinBasedThinking

· 12-12 05:48

Cutting interest rates ≠ necessarily a bull market; this logic is too naive, it still depends on regulatory approval Speaking of increased liquidity, does it really flow into the crypto market? Not necessarily, especially when it comes to quick pump-and-dump schemes The Federal Reserve's move, we'll have to wait and see how it plays out; betting now is too early It's really about who can survive to the next round; rate cuts are just a booster Multiple factors act simultaneously, and there's nothing wrong with that statement, but retail investors might not understand Loose liquidity is indeed attractive, but I'm worried it might be the eve of policy reversal again When rate cuts come, market sentiment explodes, but the real test is still ahead A single statement from regulators can ruin all expectations; the positives from rate cuts can disappear in an instant

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just_another_wallet

· 12-12 05:48

Cutting interest rates ≠ necessarily bullish; I agree with this view. Where did those people who hyped interest rate cuts as the holy grail go? Liquidity has indeed been released, but what about the regulators? A single statement can cause a market crash. Honestly, paying attention to macro factors is more important than watching the Federal Reserve's moves. They keep talking about multi-dimensional factors, but isn't it just a gamble on market sentiment? Interest rate cuts are good news for crypto, but it depends on whether the macro environment can support it; otherwise, it's just hot air. Wait, does this logic imply that liquidity will automatically flow into the crypto space? What's the reality? Basically, money just needs a place to go; BTC is just one option, not the only choice.

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GhostAddressMiner

· 12-12 05:47

Cutting interest rates is like firing a sugar-coated cannonball, do you really think it can directly trigger a bull market? On-chain data has long exposed the truth—large investors' fund migration patterns don't follow the usual rules.

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airdrop_huntress

· 12-12 05:22

Cutting interest rates ≠ Bull market. This needs to be clarified; don't get caught off guard and still not understand what's going on. Loose liquidity is a good thing, but if regulatory authorities suddenly intervene, it could be over. To be honest, whether Bitcoin can rise depends mainly on macro sentiment, not just the Federal Reserve. Risk appetite is one thing, but whether one can seize this wave of dividends is another. Wait, isn't this logic a bit too optimistic? Has lowering interest rates historically always been a good thing? The impact across multiple dimensions is correct, but which dimension has the greatest weight? That’s the real issue. Liquidity flowing into risk assets... sounds great, but the problem is that it can flow out just as easily.

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666

· 12-12 05:21

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