When the Federal Reserve cuts interest rates by 0.25% (25 bps), hereâs what usually happens:
đč Step 1: Cheaper Money
Lower interest rates mean borrowing is cheaper â Businesses & investors get more money to spend.
đč Step 2: Liquidity Boost
More money flows into markets â People start looking for higher returns.
đč Step 3: Risk-On Mode
Investors move from safe assets (like bonds) to riskier ones (like Bitcoin, ETH, altcoins).
đč Step 4: Price Impact
This buying pressure often causes a short-term crypto rally.
đ Analysis Model (Easy to Remember)
Rate Cut â â Liquidity â â Risk Appetite â â Demand â â BTC/Alts Prices â