The Federal Reserve is about to cut interest rates; will the cryptocurrency market be affected?

⚠️ The American Federal Reserve is likely to cut interest rates. Reuters asked 110 experts, and over 60% believe the Federal Reserve will take action in September, with another possible cut this year due to concerns about issues in the U.S. economy.

🌏 Federal Reserve officials have also softened their stance. San Francisco Fed President Mary Daly just said that the job market has softened, the economy is slowing (but not too much), and inflation is still high. Two interest rate cuts this year seem reasonable. She means that we shouldn't just wait for inflation to come down while ignoring the job market.

✅ New York State wants to collect "cryptocurrency tax." A legislator proposed that buying and selling cryptocurrency in New York should incur a 0.2% tax. If this goes through, the state government could rake in an additional $158 million a year. However, it has just been proposed and is still in the early stages.

💰 Institutions are optimistic about the second half of the year in the cryptocurrency market. The institution QCP stated that the market survived the first half and even rebounded (Ethereum rose 44%). There are several positive factors for the second half: clearer regulations, giants like Amazon/Walmart possibly using stablecoins, and the Federal Reserve cutting interest rates. These could make DeFi tokens, other public chain tokens, and Real World Assets (RWA) more appealing.

⭐️ The cryptocurrency market just experienced a wave of liquidations; in the past 24 hours, the entire network saw $291 million in liquidations, mainly from those who were bullish (long positions saw $221 million liquidated), and shorts also faced over $70 million in liquidations. Do you think there is a correlation?

In simple terms, the wind of interest rate cuts is picking up (possibly for the first time in September), and institutions in the cryptocurrency market see it as a positive factor, especially in the RWA direction, but New York wants to collect taxes, and market volatility is significant. #美联储降息预期