HashKey Jeffrey: The darkness is over before dawn, and the interest rate cut will lead the crypto market into a new round of rising cycle

According to Mars Finance, the Federal Reserve announced after the FOMC meeting that the target range of the federal funds rate would be reduced from 5.25% to 5.50% to 4.75% to 5.0%, a decrease of 50 basis points. In this regard, Jeffrey Ding, chief analyst of HashKey Group, said: The darkness before dawn has passed, and the starting point of a new round of tidal market has arrived. The Fed's 50 basis point rate cut this time indicates that it has obvious concerns about the current economic environment and needs to start a rate cut cycle with a larger scale. The global economy has recently faced liquidity challenges, and this rate cut decision has released new vitality for the global financial market. Bitcoin, as the "digital gold" of the new era, has performed strongly against this background, breaking through the short-term rise of $62,000. However, it is not only Bitcoin that benefits this time, and the entire crypto market is expected to usher in a new round of market in the loose monetary policy. It should be noted here that, unlike the traditional market, Bitcoin's performance is more affected by the liquidity of the US dollar rather than changes in the US economic outlook. This means that in the future loose monetary environment, Bitcoin may continue to be the preferred asset for investors to fight inflation and seek safe havens. As the interest rate cut cycle continues, the crypto market may enter a longer upward channel. Market volatility still exists, but this round of cryptocurrency market may drive more funds and innovation into the field, pushing the entire crypto ecosystem into a new stage of development.