Fed interest rate cut expectations are rising again! Will the "Liquidity" valve in the crypto world soon loosen?

Market bets are quietly adjusting, but expectations for a rate cut in September and another cut in 2025 remain strong, as the crypto world holds its breath.

$BTC Liquidity Dawn: The Crypto World's Transmission Chain of Interest Rate Cut Expectations

The Fed's interest rate policy has always been a core variable in the crypto world market. Historical experience clearly shows that when the market forms a clear expectation of interest rate cuts, risk assets often respond first.

Weakening Dollar Expectations: Rate cuts usually lead to a decline in the dollar's attractiveness. Once expectations of dollar depreciation form, the relative value of cryptocurrencies priced in dollars, such as Bitcoin, gains support.

Lower cost of capital: A rate cut means lower borrowing costs, leading to a generally looser market liquidity. Funds seeking higher returns may more boldly flow into high-risk, high-volatility assets like cryptocurrencies.

Increased Risk Appetite: A loose monetary policy environment often boosts investors' tolerance for risk. Cryptocurrencies, as an emerging and highly volatile asset class, are particularly sensitive to changes in market risk sentiment.

The current market expectations for a rate cut in September and another cut in 2025 are injecting a crucial "liquidity expectation booster" into the crypto world.