#美联储何时降息？
In the current market environment, although BTC (Bitcoin) has only fallen by 6%, many altcoins have suffered losses of up to 10%.
What is uncomfortable is that even though BTC remains stable, altcoins have declined significantly. Behind this phenomenon, it actually reveals the lack of liquidity in the market and the fluctuation of investor confidence.
The core reason for this situation is lack of funds. The current basic interest rate of the Federal Reserve remains at a high level of 5.5%, which has significantly increased the cost of international borrowing and the market lacks sufficient funds to flow into the digital currency field. At the same time, considering the particularity of the Chinese market, a large amount of funds have been absorbed by the real estate market, further reducing the supply of funds in the digital currency market.
Looking back at the great bull market in 2021, when the Federal Reserve's basic interest rate was close to 0 and the market had abundant funds, altcoins were able to grow rapidly. However, the current market environment is completely different. The rise of BTC mainly relies on the inflow of funds from ETFs (exchange-traded funds), while many altcoins have failed to receive corresponding financial support.
The market generally believes that only when the Federal Reserve starts to cut interest rates and the basic interest rate drops below 2%, will the digital currency market be able to usher in a real bull market. To stay calm and avoid over-participation in high-risk contract transactions, spot players only need to play it safe.
