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"Why Does Bitcoin Rise When Interest Rates Fall?"
If you are starting in the crypto world, you may have already seen this happen: $BTC starts to rise just when central banks announce a decrease in interest rates. But what is the relationship between these two things?
Let's simplify:
Interest rates are the tool that central banks use to control the economy. When they are high, money becomes more expensive — that is, it becomes less attractive to take out loans and invest in risky assets. This favors conservative investments, such as government bonds.
Let's simplify:
Interest rates are the tool that central banks use to control the economy. When they are high, money becomes more expensive — that is, it becomes less attractive to take out loans and invest in risky assets. This favors conservative investments, such as government bonds.
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Do You Know What 'Deflationary Cryptocurrencies' Are? Understand Why They Attract Investors
Not all crypto works like $BTC. Some have mechanisms that reduce their supply over time, which can lead to appreciation. These are called deflationary cryptocurrencies.
But what does that mean?
In economics, an asset is deflationary when its quantity decreases over time, which can make each unit more valuable. This is the opposite of traditional currencies (like the dollar), which are inflationary — governments constantly print more money.
In the crypto world, this effect is created in ways such as:
Burning (token burn): a portion of transaction fees is eliminated, reducing the total in circulation.
Limited supply: like $BTC, with 21 million fixed units.
Halving: a mechanism that cuts the mining reward in half, as in the case of Bitcoin.
Examples of cryptos with deflationary characteristics:
$BTC (limited supply and halving);
$BNB (quarterly burn);
$ETH (EIP-1559 introduced burns in each transaction).
The logic is simple: lower supply + high demand = potential appreciation.
That's why many people are keeping an eye on this type of crypto. But be careful: it’s not just the supply that determines the price — the project, adoption, and market also play a significant role.
Did you already know this concept?
#Write2Earn #BinanceSquare #MarketRebout #BinanceAlphaAlert #BinanceLeadsQ1
$BTC $ETH $BNB $SOL $MATIC
Not all crypto works like $BTC. Some have mechanisms that reduce their supply over time, which can lead to appreciation. These are called deflationary cryptocurrencies.
But what does that mean?
In economics, an asset is deflationary when its quantity decreases over time, which can make each unit more valuable. This is the opposite of traditional currencies (like the dollar), which are inflationary — governments constantly print more money.
In the crypto world, this effect is created in ways such as:
Burning (token burn): a portion of transaction fees is eliminated, reducing the total in circulation.
Limited supply: like $BTC, with 21 million fixed units.
Halving: a mechanism that cuts the mining reward in half, as in the case of Bitcoin.
Examples of cryptos with deflationary characteristics:
$BTC (limited supply and halving);
$BNB (quarterly burn);
$ETH (EIP-1559 introduced burns in each transaction).
The logic is simple: lower supply + high demand = potential appreciation.
That's why many people are keeping an eye on this type of crypto. But be careful: it’s not just the supply that determines the price — the project, adoption, and market also play a significant role.
Did you already know this concept?
#Write2Earn #BinanceSquare #MarketRebout #BinanceAlphaAlert #BinanceLeadsQ1
$BTC $ETH $BNB $SOL $MATIC
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How Can Traditional Market Actions Influence Cryptocurrency Prices?
Many people enter the crypto world thinking it is an isolated market, free from external influences. But the truth is that cryptocurrencies and stocks are more connected than they seem.
Have you noticed how $BTC and $ETH sometimes react to announcements from the Federal Reserve or crises in exchanges like Nasdaq?
This happens for several reasons:
Investor sentiment: when the traditional market is pessimistic, many investors sell risk assets — including crypto.
Interest rates: if interest rates rise in the U.S., for example, capital migrates to investments considered more 'secure', pulling liquidity away from cryptos.
Temporary correlations: in times of economic tension, different assets start to move similarly (positive correlation).
Large institutions: today, a significant portion of the money in crypto comes from funds and institutions that also operate in the stock market. When they move, the entire market feels it.
In other words, understanding global movements can give you an advantage within the crypto universe.
Even if you only trade cryptocurrencies, keeping an eye on the S&P 500, U.S. interest rates, and the dollar can show you possible anticipation or retraction movements in the market.
The market is not isolated. It interacts with the world.
#Write2Earn #BinanceSquare #MarketRebout #BinanceAlphaAlert #BinanceLeadsQ1
$BTC $ETH $BNB $SOL $XRP
Many people enter the crypto world thinking it is an isolated market, free from external influences. But the truth is that cryptocurrencies and stocks are more connected than they seem.
Have you noticed how $BTC and $ETH sometimes react to announcements from the Federal Reserve or crises in exchanges like Nasdaq?
This happens for several reasons:
Investor sentiment: when the traditional market is pessimistic, many investors sell risk assets — including crypto.
Interest rates: if interest rates rise in the U.S., for example, capital migrates to investments considered more 'secure', pulling liquidity away from cryptos.
Temporary correlations: in times of economic tension, different assets start to move similarly (positive correlation).
Large institutions: today, a significant portion of the money in crypto comes from funds and institutions that also operate in the stock market. When they move, the entire market feels it.
In other words, understanding global movements can give you an advantage within the crypto universe.
Even if you only trade cryptocurrencies, keeping an eye on the S&P 500, U.S. interest rates, and the dollar can show you possible anticipation or retraction movements in the market.
The market is not isolated. It interacts with the world.
#Write2Earn #BinanceSquare #MarketRebout #BinanceAlphaAlert #BinanceLeadsQ1
$BTC $ETH $BNB $SOL $XRP
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