Interest rate cuts are like a savior in this sluggish market. The interest rate cut I've been waiting for since last year's bear market is finally here! However, from traditional financial institutions to KOLs in the coin industry, there are many opinions on interest rate cuts, making people lose their minds and wonder whether they should buy or sell at this time. In this article, we're going to ask for a sword, objectively review the price trend of Bitcoin over the past few interest rate cut cycles, and answer some of the questions people are most concerned about one by one: when will it start to rise after interest rate cuts, how many times can it rise after interest rate cuts, and how long will it usually rise after interest rate cuts!

Does cutting interest rates mean there will definitely be an increase?

Interest rate cut policies are usually aimed at coping with a slowdown in economic growth or anticipated inflationary pressure. When the overall economy is in trouble or even at risk of recession, interest rate cuts can reduce borrowing costs. In other words, the matter of “obtaining capital” becomes cheaper, and can effectively promote economic activity.

Relaxed policies will increase the flow of capital to the market. In addition to increasing liquidity, they also indirectly reduce the cost of holding cash. At this time, investors tend to look for markets with higher returns, which not only drive traditional assets such as the stock market to rise, but also indirectly affect the price of the risky asset market. As an investment tool that is considered high-risk and high-return, Bitcoin is of course quite popular!

How long after interest rates are cut will they start to rise: the market lag is usually 1 to 3 months

Since the market picked up at the end of last year, interest rate cuts have been one of the main narratives of this round of bull markets. Not only have the financial markets already hyped up expectations of a wave of interest rate cuts, but there are also some who think that interest rate cuts are actually already in price.

I believe what everyone wants to know the most is, after interest rate cuts actually start, when will they start to rise?

Looking back at Bitcoin's performance during the interest rate cut cycle a few times, the increase will actually not occur immediately after the interest rate cut, but there will be a certain time lag. According to several cases of interest rate cuts in the past, the lag time is generally 1 to 3 months. The length of the delay depends on how quickly the market digests interest rate cut policies and the state of the global economy.

It can be speculated that after the first rate cut in 2024, the financial market may begin to gradually rise from October to December.

Which one is better to buy before cutting interest rates: Which is much higher, US stocks or Bitcoin?

The driving effect of interest rate cuts on the financial market is not only on Bitcoin, but of course it is also reflected in the world's largest financial market, US stocks. Since the price of Bitcoin is increasingly linked to the stock market in recent years, of course, we must also pay attention to the performance of the stock market that has cut interest rates several times in the past.

When the Fed cuts interest rates, the US stock market usually rebounds in the short term. Although Bitcoin's performance sometimes lags behind the stock market, it often shows greater gains later!

Based on past data, we can see Bitcoin's rise after interest rate cuts, with a chance of reaching hundreds of percentage points! In line with the previous forecast of 10-0.15 million!

How long do interest rates usually rise after cutting? The duration of the rise and market sentiment

Bitcoin's rise during the interest rate cut cycle usually lasts from a few months to a year. The exact length of time depends on market liquidity, investors' risk appetite, and economic fundamentals. Take 2020 as an example. Bitcoin rebounded from a low in March and continued to rise to a high in April 2021, with a total increase of more than 1,500%

Bitcoin's likely performance after the 2024 interest rate cut

Looking back at the past two interest rate cut cycles, Bitcoin's price performance outperformed US stocks.

The market generally lags for 1 to 3 months, and there is an opportunity to start to meet the upward trend 1 to 3 months after interest rate cuts.

The past two cycles of interest rate cuts have led to an upward cycle that has lasted from several months to almost a year.

Bitcoin's increase in the past two interest rate cut cycles was 240% and 400%, respectively. The current rate increase may be expected to exceed 100%, which means there is an opportunity to exceed 0.1 million dollars

Of course, Bitcoin's price is highly volatile, and the exact size and duration of the increase will vary depending on market sentiment and the macroeconomic environment. Therefore, even if interest rate cuts fuel the price of Bitcoin, everyone must master the pace, develop their own strategy to cut the bottom and escape the top, and carefully evaluate global economic developments.

Mentougou's selling pressure has been absorbed 80%. Currently, there are only 0.03 million or more BTC left in the Mentougou wallet. After a few more days of turbulence, it should be able to usher in a wave of rebound.

The main focus is on Wednesday at 8:30 p.m., when the CPI will be announced. This will be the last major data before the Federal Reserve's September interest rate meeting

Big money will definitely not act recklessly until the CPI data is released. If the CPI data is in line with expectations or is stronger, the coin industry will still fall a wave, and vice versa, the coin industry may sound the horn of counterattack

Operation recommendations:

This difficult time is a good opportunity to cut the bottom in batches. There are a bit of ups and downs in the middle, but don't cut the meat at the bottom.