Recently, the topic of the Fed's interest rate cuts has attracted attention from the market. Looking back at history, we can see the close relationship between monetary policy and the crypto market.

In 2020, global liquidity increased significantly, and Bitcoin rose from a low of $3,000 to nearly $65,000. The crypto market welcomed a bull market, with fields such as DeFi and NFTs thriving.

At the end of 2021, the Fed announced its intention to raise interest rates, and market expectations changed drastically. Bitcoin fell from a high of $69,000 to around $30,000. After the interest rate hike cycle began in early 2022, the crypto market continued to be under pressure, experiencing multiple pullbacks and liquidity tightening.

In this round of interest rate hikes, the United States is trying to curb inflation, stabilize financial markets, and promote the appreciation of the dollar. However, this policy has also brought about many negative effects. The crypto market has experienced multiple significant event shocks.

In September last year, the Fed announced a rate cut, and global risk assets reacted swiftly. Bitcoin began a new round of increase from around 52000 dollars.

As the Fed begins to cut interest rates, global liquidity expectations have once again shifted towards easing. This year, Bitcoin has shown a steady upward trend, and the market is expected to continue to grow in the coming months.

It is expected that in October, Bitcoin may end its sideways consolidation and restart its upward trend after a brief adjustment. Before the middle of next year, the crypto market is likely to maintain an upward trend. With global liquidity improving and risk aversion easing, the cryptocurrency market is expected to welcome a new round of increases.

Investors should closely follow market trends, assess risks reasonably, and seize potential opportunities. At the same time, they should be vigilant about the challenges posed by market volatility and manage risks effectively.