Rate cuts are the money printer for the crypto market, and this time, even pension funds are getting in on the action!
Countdown to Federal Reserve rate cuts! Is Bitcoin about to welcome an epic market event?
Recently, market expectations for a Federal Reserve rate cut have surged, with the CME FedWatch tool showing that the probability of a rate cut in September has soared to over 90%! Just today, Bitcoin's price suddenly skyrocketed, breaking through $117,000, and Ethereum also surged 6% to $3,900! Behind this is not only the boost from rate cut expectations but also explosive news—President Trump has just signed an executive order allowing 401(k) retirement accounts to invest in cryptocurrencies! This means that up to $8.7 trillion in pension funds may flood the market, and even if only 2% flows in, it will bring $170 billion in buying pressure!
Historical trend: Does Bitcoin always rise before a rate cut?
Looking back, Bitcoin often performs remarkably during Federal Reserve rate-cutting cycles:
The massive liquidity event of 2020: The Federal Reserve cut rates to 0% and initiated unlimited QE, causing Bitcoin to soar from $5,000 to $69,000, with an increase of over 13 times!
Interest rate hike cycle from 2015 to 2018: Bitcoin rose during the early stages of rate hikes but eventually crashed at the end of the 2018 hike, proving that 'it can still rise in the early stages of rate hikes, but the risks are high later on.'
Expected rate cuts in 2024-2025: The market has already reacted in advance, with Bitcoin rising 25% as expectations for rate cuts heat up, and institutional funds are flooding into ETFs, with giants like Grayscale and MicroStrategy continuously increasing their holdings.
Latest news: Rate cuts + dual policy benefits!
Trump nominates 'dove' to the Federal Reserve: Newly nominated board member Stephen Miran, an economic advisor to Trump, will accelerate the rate-cutting process, with the market expecting a rate cut in September to be a certainty!
401(k) funds are about to enter the market: Pension funds entering will bring long-term stable buying pressure, and Bitcoin may enter a 'slow bull' mode rather than short-term speculation.
SEC regulatory easing: The U.S. Securities and Exchange Commission's latest 'Project Crypto' plan allows more institutions to invest in crypto assets in compliance, further driving capital inflow.
If you don't enter the market now, will you miss the last train of wealth?
Standard Chartered's latest prediction: Bitcoin is expected to hit $200,000 by the end of the year! Ethereum may reach $6,000! But be aware, interest rate cuts are not a universal solution—if economic recession accompanies rate cuts, the market may experience short-term panic declines. However, from a historical perspective, the best time to invest in Bitcoin is usually before rate cuts, and once the cuts are implemented, the market may enter a phase of accelerated growth!
Buy before rate cuts, hold after rate cuts! Institutions are already taking action; are you still waiting? Follow us for the latest market dynamics and precise buy/sell points!
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