#美联储降息预期 The Fed's interest rate cut meeting will be held in three days, and many investors can't help but wonder: what is the relationship between interest rate policies and the rise and fall of the crypto assets market? In fact, the logic behind this is exceptionally clear—when funds can't find ideal investment directions, some will flow into the crypto assets market, a simple truth that cannot be ignored.

First, lowering interest rates decreases the attractiveness of low-risk investment products. In the past, depositing funds in the bank or purchasing government bonds could yield stable returns, becoming a source of passive income for many. However, once the interest rate cut is implemented, rates may be halved, meaning that the interest on a 100 yuan annual deposit could drop from 3 yuan to 1 yuan. In this case, who would still be willing to let their funds sit idle with no efficiency? Investors holding cash will inevitably seek investment channels with higher returns.

Secondly, the crypto assets market has become more attractive as a high-risk, high-return investment option. Digital assets such as $BTC and $ETH, although volatile and concerning during falls, also offer exciting returns during rises. When the yields on low-risk investments decline, funds seeking high returns naturally turn their attention to the crypto assets market. Even investors who typically prefer conservative financial strategies might allocate a portion of their funds to the market, hoping for profits from the rise in coin prices.

Finally, the expectation of interest rate cuts often has a greater impact on the market than actual rate cuts. The crypto assets market tends to react in advance; as long as the market generally expects multiple rate cuts in the future, investors will take action ahead of time. For example, if there is news of two potential rate cuts within the next six months, many people will immediately invest funds into the crypto market, hoping to profit when subsequent capital inflows drive up prices. This behavior of positioning in advance often leads to crypto assets starting to rise before the interest rate cut policy is officially implemented, as the market reflects expectations in advance.

Fundamentally, interest rate cuts do not directly inject funds into the Crypto Assets market, but rather indirectly encourage funds that would originally be placed in traditional financial products to seek new investment directions by reducing the attractiveness of low-risk investments. When this portion of liquidity shifts towards the Crypto Assets market, it will naturally drive coin prices up. This phenomenon once again proves the close relationship between Crypto Assets and macroeconomic policies, making it essential for market participants to understand this.