The topic that everyone asks about, especially beginners, is what the US interest rate cut means.
First: Everyone must be completely certain that $BTC will rise sooner or later due to its scarcity (million coin 21)
Second: The prices of digital currencies rise when interest rates are reduced for several reasons
1. **Stimulating investment:**
Lowering interest rates reduces the return on investment in traditional assets such as bank deposits, which prompts investors to look for other investment opportunities, including digital currencies.
2. **The decline in the purchasing value of traditional currencies:**
When rates are cut, the strength of traditional currencies like the dollar declines, making alternative assets like cryptocurrencies look more attractive.
3. **Inflation expectations:**
A rate cut may lead to expectations of higher inflation, prompting investors to look for assets that act as protection against the decline in the value of traditional currencies.
4. **Increase in demand:**
A rise in interest in cryptocurrencies can increase demand for them, raising their prices.
These factors are not always constant, and markets can be affected by other factors as well such as economic and political events and technological developments
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