The Fed has started to lower interest rates again, and your first reaction is probably: the crypto market is going to big pump?

Don't rush to pop the champagne. The interest rate cut is more like a ticking alarm clock for the crypto market - it won't directly gift you a big package, but it will wake everyone up at a critical moment: the rules of the game are about to change.

**Why is there suddenly a need to cut interest rates?**

The surface reason sounds official: inflation data is softening, economic growth is hitting the brakes, and the job market is starting to show signs of fatigue. The high interest rates have been hanging for too long, and the side effects can no longer be hidden.

What it means is:
- The corporate financing costs are tightly constrained, and tech stocks and growth stocks are the first to be unable to withstand it;
- If the unemployment rate continues to rise, both the U.S. stock market and the consumer market will suffer, and policymakers will have to reposition themselves between "controlling inflation" and "saving the economy."

So this round of interest rate cuts is essentially a defensive move, not a release of liquidity.

**Is interest rate cut good or bad for the crypto market?**

Textbooks will tell you: the lower the interest rate, the cheaper the money, and funds will naturally flow to high-risk, high-return assets—such as the stock market, such as Bitcoin.

But reality is often more magical:

**1) The market plays the "expectation difference" game**

The interest rate cut news hasn't been officially announced yet, but BTC and ETH may have already surged ahead. What about the day it is actually announced? The classic script is often "good news fully priced in, short-term correction."

**2) Liquidity has loosened, but money may not necessarily flow into the crypto market**

Lowering interest rates is just opening the tap; where the water flows depends on risk appetite. If market sentiment remains cautious, funds may first cling to government bonds, or pile into gold and U.S. stocks, while the crypto market can only watch helplessly.

**3) A real market trend requires a "combination punch"**

Relying solely on interest rate cuts cannot support a bull market. You need to consider signals like regulatory easing, institutional capital entering the market, and warming on-chain data together to determine whether this wave is a real spring or a false spring chill.

So, don't treat interest rate cuts as a charge signal. It's more like an opening cue — reminding you to adjust your positions, don't rush in mindlessly, and don't lie down mindlessly either.