UNDERATANDING THE MARKET BEFORE AND AFTER RATE CUT

Watchout my fellow friends...Just want to share my opinion and advise to new comers. People are talking about BTC to the moon and new ATH everry day due to rate cut. Off course definately right BTC surely will fly but nobody mention it will go down deeeep first. This is what will happen if interest rates are cut (by the U.S. Federal Reserve or other central banks), 

#BTC typically reacts positively. Here's what usually happens and why:

1. BTC Price May Rise

Lower interest rates reduce yields on traditional Historically, before a rate cut happens, Bitcoin (BTC) often goes through uncertainty or even short-term declines, depending on the macro environment. Here's a breakdown of what tends to happen:

What Happens to BTC Before a Rate Cut?

1. Uncertainty → Volatility

Markets speculate on when and how much the Fed will cut rates.

BTC often becomes volatile, with sharp moves up or down based on economic data (e.g. CPI, jobs reports).

2. BTC Can Drop Leading Into the Cut

Historically, BTC has often dipped before a rate cut due to:

Macro fears (recession, banking instability, etc.).

Risk-off sentiment — investors reduce exposure to volatile assets.

In these times, BTC behaves more like a risk asset than a “safe haven.”

3. Example: March 2020 (Covid Crisis)

BTC crashed over 50% in the weeks before the emergency rate cut (March 15, 2020).

The rate cut didn’t immediately pump BTC — the real rally came later with massive liquidity injection (QE).

4. Example: Mid-2019

Fed began cutting rates slowly due to global slowdown fears.

BTC actually rallied into the first cut (peaked around $13K in June), but then dropped afterward as macro concerns persisted.

This not a trading advise. Do your own reaearch and manage your money carefully.