#美联储降息预测 The Logic Behind the Crypto Market Amid Interest Rate Cuts: Why Is Capital Pouring In?

The recent rate cuts have propelled the crypto market, mainly due to two fundamental underlying logics:
On one hand, rate cuts directly reduce the returns on holding cash and fixed-income assets. As the 10-year US Treasury yield drops to 4.07%, $7.2 trillion in money market funds is urgently seeking higher-yielding alternatives. As a high-growth alternative investment, crypto assets naturally become an important direction for both capital preservation and appreciation. Data shows that after the rate cut, institutions like BlackRock have increased their crypto allocations by 12%, with net inflows to Bitcoin ETFs exceeding $5 billion.

On the other hand, the easing policy has significantly increased market risk appetite. The decline of the US Dollar Index has weakened fiat purchasing power, further strengthening Bitcoin’s “digital gold” inflation-hedging properties. At the same time, DeFi lending rates have dropped below 3%, leveraged trading volume is up 25% month-over-month, and total value locked has steadily recovered from $86 billion, fully revitalizing the entire crypto ecosystem.

Rational Planning Is Critical During the Dividend Period
The Fed’s rate-cut cycle has injected strong momentum into the crypto market, but the “buy the rumor, sell the news” market rule should not be ignored. During this dividend period, it’s important to remain rational and avoid blindly chasing highs. It is recommended to follow a “large caps first, then the ecosystem, then segments” layout logic, use professional tools to track capital flows, and implement sound risk control. After all, in a market where opportunities and risks coexist, professional support is often the core advantage for profitability.