The Federal Reserve's interest rate cuts are considered beneficial for the US stock market and the cryptocurrency sector, with the core logic being liquidity easing and an increase in risk appetite:
For the US stock market:
Interest rate cuts lower corporate financing costs, stimulate credit and consumption, and improve profit expectations;
Low interest rates reduce the attractiveness of fixed-income assets like bonds, leading funds to flow into the stock market, pushing up valuations, especially benefiting growth stocks (such as technology stocks).
For the cryptocurrency sector:
Market liquidity spills over, with high-risk appetite funds flooding into cryptocurrencies;
Under expectations of USD depreciation, assets like Bitcoin are seen as safe-haven or speculative targets, combined with institutional entry, which easily drives up prices.
But it should be noted that the actual trend is also affected by economic fundamentals, policy coordination, and other factors, and is not absolutely inevitable.
