Analysis: Interest rate cuts provide favorable growth opportunities for high-risk assets, but we need to be alert to the impact of macroeconomic weakness on market confidence.

Golden Finance reported that the Federal Reserve recently cut interest rates by 50 basis points, the first time since 2020, exceeding market expectations. After the rate cut, virtual assets such as BTC and Ethereum sparked price movement. Some analysts believe that historically, unless there is a major economic crisis, the Federal Reserve rarely cuts interest rates by 50 basis points. This indicates that the Federal Reserve is taking more aggressive monetary easing measures to address potential downside risks to the U.S. economy. This move reflects the Federal Reserve’s high vigilance over the current economic situation. In a low interest rate environment, loose monetary conditions often accompany the proliferation of Liquidity, providing a relatively favorable growth space for high-risk assets. Virtual assets, due to their high volatility and strong risk preference attributes, have become an important choice for investors seeking high returns. However, the public also needs to realize deeply that the price Fluctuation of virtual assets depends not only on the short-term impact of Liquidity expansion. Although interest rate cuts can bring in funds, they also signal potential problems in the US economy, especially against the background of weak economic rise and increasing recession risks, leading to increased market uncertainty, all of which may disturb the prices of virtual assets. Investors need to be alert to the impact of macroeconomic weakening on market confidence, especially when the economic performance is below expectations or when the Fed’s monetary policy undergoes adjustments, the market may face significant Fluctuation. For the Virtual Money industry, big pump and big dump prices are almost normal. In the industry’s view, investors should have a clear understanding and be aware of the risks associated with such high-risk assets.