Will there be no bull market in the crypto space if the Federal Reserve does not cut interest rates in 2025?
The market hasn't dropped much, but it fails to generate any interest. Although it hasn't fallen significantly, there are increasingly more pessimists.
In the financial markets, patience and confidence are crucial, and the main players use various market conditions and news to undermine the sentiments of retail investors.
Yesterday, a fan asked me if this is how it will be in 2025, with no bull market. The reason he gave was: 'The market hasn't risen for a long time; Bitcoin is really at a high level, many coins are still at the bottom, and some are continually breaking new lows. Moreover, if the Federal Reserve does not cut interest rates, there will be no liquidity.'
I countered with two questions.
The first question: 'If you experienced the last bull market, before the big rise in 2021, you weren't my fan yet. Weren't you also confused before it rose? And then you missed out on the last bull market?'
Many people only experienced the big rise in 2021, so they feel that such market conditions come quickly. However, if you entered after the bottom of the bear market at the end of 2018, I believe you would not have seen the bull market of 2021, because you would have been worn out in 2019 and 2020.
Comparing the results of the last bull market to the process of this bull market is itself a flawed comparison.
Many people want to earn 5x, 10x, dozens of times, or even hundreds of times, but if you are always worried about a significant market drop and always believe that the bull market hasn't arrived, when the market starts to rise, can you still earn 10x or dozens of times?
The second question: 'Do you really understand the significance of the Federal Reserve cutting interest rates for the crypto space? Is it necessary for the Federal Reserve to cut interest rates for there to be liquidity?'
Retail investors generally focus on recent events. Many people think that when the Federal Reserve increased liquidity in 2020, the subsequent bull market in 2021 was initiated, believing that interest rates must be cut to a certain level before liquidity leads to a bull market.
In reality, there have been several bull markets in the crypto space, and only the last bull market coincidentally occurred with the Federal Reserve cutting interest rates and increasing liquidity. There were bull markets before without interest rate cuts or liquidity injections.
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