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Does an interest rate cut affect Bitcoin's price?


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The impact of interest rates on Bitcoin is a widely debated topic, especially when the US Federal Reserve cuts rates. Lower interest rates can lead to increased liquidity and risk appetite, potentially driving more investment into Bitcoin. However, other macroeconomic factors, including inflation and market sentiment, also play a role. This discussion explores how US interest rate cuts influence Bitcoin's price, investor behavior, and the broader crypto market. How do you think rate cuts affect Bitcoin in the long run?

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Rate cuts increase liquidity.

Historically, increased liquidity increases BTC price.

 

That means: crash of international bond or stock markets --> tighten liquidity --> crash of BTC price.

That's why BTC is not a safe heaven like gold.

 

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