'Cutting interest rates = positive signal' - Will this formula reappear... The possibility of Bitcoin ($BTC) rebounding after adjustments

Some analyses point out that the cryptocurrency market experienced a slight rebound after the Federal Reserve (Fed) lowered interest rates, and it may continue to rise further in the future.

On-chain analytics firm Santiment noted that the Fed cut interest rates three consecutive times from September to December last year, totaling a 0.75 percentage point decrease. Although this move is viewed as a “positive” for cryptocurrencies in the long term, in reality, each rate cut announcement was followed by a temporary drop in prices. This typical investment pattern of “buy on rumors, sell on news” has been repeatedly observed.

Santiment stated, “This time is no exception,” and predicted that “if the panic (FUD) among some investors or retail selling pressure weakens, the downward trend after the rate cut will end soon.” It then added, “After the selling pressure subsides, a rebound usually occurs, so traders can develop strategies to take advantage of this.”

Lowering interest rates and borrowing costs generally increase risk appetite and stimulate capital inflows into speculative assets, including cryptocurrencies.

Market expectations suggest that after a short-term adjustment, with the effects of the rate cut becoming apparent, major cryptocurrencies like Bitcoin (BTC) may rebound again. In particular, some analysts believe that during the liquidity recovery phase, retail investor movements could influence future market trends.

Article summary by TokenPost.ai

🔎 Market Interpretation

The Fed’s rate cut triggered a short-term decline, but in the long run, it could be a “positive” for providing liquidity to the cryptocurrency market. The rebound after the decline is a recurring pattern and presents an opportunity for short-term trading strategies.

💡 Strategy Highlights

The key is to stay on the sidelines within the volatility range after the rate cut and to seize the moment when selling pressure weakens. When a rebound signal is detected, consider re-entering the market.

📘 Terminology Explanation

FUD: Abbreviation for “Fear, Uncertainty, Doubt,” referring to psychological factors that provoke investor sell-offs.

‘Buy the rumor, sell the news’: Refers to the typical investment behavior of buying in anticipation and selling to lock in profits once the news is announced.

TP AI Notes

This article uses a language model based on TokenPost.ai for summarization. The main content of the body may be omitted or inconsistent with facts.