Interest rate cuts are a big story in traditional financial markets. It's not just a slight adjustment in rates, but a super narrative that can ignite global funding sentiment. Everyone understands that when rates are low, money is cheap, and asset prices are easily pushed up—this has long been a consensus in the stock, housing, and bond markets.
But in the cryptocurrency space, retail investors are more direct. When they hear about a rate cut, their first reaction is: it’s going to rise! Because in their eyes, a rate cut is not just a financial maneuver, but some sort of 'policy endorsement,' like the official stamp of approval on the market. So they feel that buying this time is definitely the right move, and they scramble to increase their positions.
Those who truly understand know that the crypto market is not driven by policies, but by human nature. The main force can press down so hard that you begin to doubt yourself; the goal is not to make prices fall, but to ensure that the subsequent rise is smoother. Without this period of patience and torment, the chips are too scattered, making the rise less satisfying and reducing selling efficiency.
Especially when it comes to Ethereum and altcoins, each significant sell-off is almost tied to Bitcoin's four-year cycle. At crucial points, the main force must find a compelling story to tell. Relying solely on technical rises may yield a few times increase, but if retail investors are not emotionally ignited, they won’t rush to buy, and there won’t be anyone to take over.
At this time, rate cuts become the perfect excuse. Once the news is out, it’s like pressing the start button on market sentiment. Retail investors feel that the whole world is in favor, and they rush in; what the main force wants is this kind of atmosphere. Retail investors believe that rate cuts can make money, while the main force is convinced that they can take the opportunity to sell smoothly.
So, rate cuts themselves aren’t that magical, but they can turn into a consensus among all. For retail investors, it’s faith; for the main force, it’s the best stage.