The US Federal Reserve recently announced a 25 basis point interest rate cut, which caused a huge stir in the global financial market. However, although the market expected that this good news would drive up the price of Bitcoin, the actual situation was not the case. Why did the Fed's interest rate cut fail to drive up the price of Bitcoin? This article will analyze this phenomenon in depth from multiple angles and reveal the underlying reasons.

The impact of the Fed's interest rate cut on the price of Bitcoin first needs to start with the correlation between the two. As a cryptographic digital currency, the price fluctuations of Bitcoin are affected by many factors, including the global economic situation, political events, and market sentiment. Although interest rate cuts are generally regarded as positive factors that help stimulate economic growth and boost market confidence, for Bitcoin, an emerging asset, its price fluctuations are more affected by factors such as supply and demand and market speculation. Therefore, the Fed's interest rate cut does not directly lead to an increase in the price of Bitcoin.

Against the backdrop of the Fed's interest rate cut, the risk appetite of the global market has changed. When evaluating asset allocation, investors often consider the correlation between different asset classes and their performance during market fluctuations. With the Fed's interest rate cut, traditional assets such as stocks and bonds may be affected to a certain extent, and investors may turn their funds to safe-haven assets or emerging assets, such as gold and Bitcoin. However, as a highly volatile asset, Bitcoin's price fluctuates greatly. Investors tend to choose relatively stable safe-haven assets when market uncertainty increases, resulting in the failure of Bitcoin prices to rise rapidly.

In addition, there are some special factors in the Bitcoin market itself that affect its price performance. Bitcoin's supply is fixed and has a halving mechanism, which means that mining output gradually decreases and supply gradually shrinks, which may support prices. However, the Bitcoin market is also susceptible to factors such as manipulation by large investors and market rumors, with large price fluctuations and investors generally have a high sense of risk. Against the backdrop of the Fed's interest rate cuts, market sentiment may be more cautious, and investors are more inclined to wait and see or choose relatively stable investment targets rather than chasing high-risk assets such as Bitcoin in the short term.

In addition, the adjustment of the global economic structure also has a certain impact on Bitcoin prices. With factors such as the slowdown in global economic growth and the intensification of trade frictions, the market demand for safe-haven assets has gradually increased. In this case, traditional safe-haven assets such as gold may be more popular, while Bitcoin, as an emerging safe-haven asset, its status and performance need to be further verified. Therefore, although the Fed's interest rate cut will have an impact on the global market, its impact on emerging assets such as Bitcoin may be relatively limited.

In summary, although the Fed's interest rate cut is an important market good news, it does not directly lead to an increase in Bitcoin prices. As an emerging asset, Bitcoin's price is affected by many factors, including supply and demand, market sentiment, and the global economic landscape. Investors need to consider various factors comprehensively when evaluating asset allocation, invest rationally, and avoid risks. In the future, as the global market landscape changes, the performance of Bitcoin prices will also receive more attention. Investors need to respond cautiously and seize investment opportunities. I hope that in the future market fluctuations, every investor can win the game and win the ideal return on investment.

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The Federal Reserve cut interest rates again last night. The last time it did so was the first time in 11 years, so this time it was the second time in 11 years. However, it was just the expected rate cut. When the news came out, the US stock market fell, gold fell, and Bitcoin actually fell slightly.

The rate cut that everyone hoped for was not seen. Just like the last time, the Federal Reserve just "felt a sign" and only cut interest rates by 25 basis points. Compared with the larger rate cut that everyone thought would happen, it was still quite disappointing. The reason is actually that the Federal Reserve's recent series of operations (including the first repurchase in recent years) have made people begin to expect the start of the fourth round of quantitative easing.

However, it is not just us who are disappointed. The US President Trump is even more disappointed. He cursed the Federal Reserve on Twitter for being ignorant.

In fact, it is not the Federal Reserve's fault. The current US economy is actually quite good. To be honest, there is no basis for a rate cut. Because the premise of a rate cut is generally that economic development has encountered a bottleneck, and it is necessary to increase monetary liquidity by lowering interest rates to achieve the purpose of stimulating the economy. At present, all economic indicators in the United States, whether employment, trade, industry, etc., are good, so the Fed does think there is no need to cut interest rates, but in order to cope with the gaze of all walks of life, especially Trump, the Fed still cut interest rates a little.

To answer the question in the title, the Fed cut interest rates, why didn't Bitcoin rise? In fact, the reason is the same as that of gold and US stocks, which did not rise or even fell, because the expectation is to "cut enough" rather than "cut a little". The Fed's reduction is indeed not enough, and it is far less than people's expectations. The financial market has always been a market that plays with expectations. If expectations are not enough, it will naturally not rise.

However, the Fed's next round of quantitative easing is still exciting. The US dollar has not been properly released for many years. Not only does it make the currencies of countries around the world that rely on foreign exchange (mainly US dollars) to support the issuance of currencies very uncomfortable, but many financial assets are also looking forward to it, especially risky assets. Yes, it is the Bitcoin you are most familiar with.

Yesterday, the boss of Bitmex, Brother Xiaohei, called for Bitcoin. He said that the fourth round of quantitative easing is coming, and after that, Bitcoin will soon return to 20,000 US dollars.

If the loosening begins, that is, if the US dollar finally starts to release water, the global currency will follow suit, and then the first beneficiaries will be risky asset investments, such as Bitcoin, new stocks, technology venture capital, etc. This is the logic that everyone thinks the Fed's decision is very important for Bitcoin.

In fact, Bitcoin's trend this year is positively correlated with the US dollar, and negatively correlated with the US dollar. This shows that the Fed's decision can indeed directly affect the trend of Bitcoin, so although it will not rise in the short term, in the long run, the current expectations and the actual interest rate cuts are both good for the future price of Bitcoin, so everyone is actually more optimistic about the future price trend of Bitcoin.

In short, I am optimistic.