Bitcoin's decline in the United States has an impact on the crypto circle, generally being more favorable, mainly reflected in the following aspects:

- Short-term price increase: After the Favourable Information is announced, the market usually reacts quickly. For example, on September 18, 2025, when the Federal Reserve announced a 25 basis point interest rate cut to 4.00%-4.25%, Bitcoin's price rapidly rose by about 1%, and mainstream cryptocurrencies also strengthened simultaneously, with the overall cryptocurrency market soaring by $80 billion.
- Medium- to long-term capital inflow: From a macroeconomic perspective, a rate cut increases the opportunity cost of holding dollar-denominated assets, prompting market participants to reassess asset allocation strategies. Some funds may flow from traditional markets into high-elasticity digital assets like Bitcoin and Ether. Moreover, the widespread launch of Bitcoin and Ether Spot ETFs provides institutional funds with more convenient allocation channels, which is beneficial for the long-term development of the marketplace.
- Increased market risk appetite: Rate cuts usually put downward pressure on the dollar. Since most mainstream cryptocurrencies are dollar-denominated, a weaker dollar will boost demand for assets priced in other currencies. Additionally, a low-interest environment enhances market risk appetite, encouraging investors to participate in speculative trades in the crypto market, increasing market activity and capital volume.

However, rate cuts may also bring some uncertainties, such as potential technical pullbacks after the market's "favourable information" is fully priced in, and disagreements within the Federal Reserve regarding future interest rate paths could also increase volatility in the cryptocurrency marketplace.