Amid the turmoil in the financial market, the news that four central banks have cut interest rates one after another in the past two days is like a bombshell, causing huge shocks in the market. At the same time, Bitcoin, a decentralized digital currency, has attracted much attention as a safe-haven asset. This article will delve into the impact of central bank interest rate cuts on financial markets, as well as the safe-haven properties of Bitcoin in this context.

In the past two days, the central banks of four countries in the Asia-Pacific region have successively announced interest rate cuts. The "safe haven attribute" of Bitcoin, the largest cryptocurrency by market value, has once again attracted investors' attention.

The Bank of Thailand announced on Wednesday that it would cut its benchmark interest rate by 25 basis points to 1.5%. It believes that a stronger baht may have a greater impact on the economy amid the unstable global trade situation. On the same day, the Reserve Bank of India announced a 35 basis point cut in the benchmark repo rate to 5.4% to support economic growth. Subsequently, the Reserve Bank of New Zealand lowered the official cash rate by 50 basis points to a record low of 1%, and the Philippine central bank lowered the benchmark interest rate by 25 basis points to 4.25%.

So far, this year’s global interest rate cutting frenzy has spread to more than 20 countries around the world. Analysts believe that in the face of slowing economic growth and global instability, interest rate cuts are an important tool to stabilize the economy. The current implementation of loose monetary policies has become a global trend. Coupled with the already protracted and intensifying trade war between China and the United States, global investors are looking for opportunities to buy safer assets such as government bonds, gold and Bitcoin.

Former Goldman Sachs executive Raoul
Pal said on Twitter, "We are at the most important moment in the foreign exchange market in the past 30 years. The U.S. dollar has experienced uncontrollable rising risks." He said that at least seven legal currencies are depreciating, and the strength of the U.S. dollar is giving rise to a major A massive global wave of deflation, which could lead to a financial crisis. The only good news, he believes, is that this will drive Bitcoin prices bullishly.

According to Bloomberg, the correlation between Bitcoin and the traditional “safe-haven asset” gold has soared from 0.496 to 0.837 in the past three months, almost doubling. This shows that the uncertainty of the global economic and political situation makes investors increasingly inclined to regard "digital gold" Bitcoin as a safe-haven asset like gold. Jeremy, CEO of crypto payments company Circle
Allaire also said this week that Bitcoin is becoming "a non-sovereign, highly secure, Internet-based store of value."

Chris, Chief Marketing Officer, Rhythm Technologies
Reinertsen said in an interview with Forbes that Bitcoin is joining the ranks of traditional safe-haven assets such as U.S. Treasury bonds, gold and the Swiss franc. He said, “The Chinese yuan has just fallen below an 11-year low against the US dollar. A large amount of money has flowed into safe-haven assets, including Bitcoin. In the past few years, as global economic uncertainty has increased, Bitcoin has become more and more popular. More and more affected by the macroeconomic situation, this trend has begun to appear."

Kirill, CEO of OpenLTV
Bensonoff agrees. He told Forbes, "I believe Bitcoin is becoming a 'safe haven asset' similar to gold. Although not exactly related to gold, whenever major markets are down, Bitcoin will rebound. I believe we will see more soon. of money flowing into Bitcoin."

However, some people are cautious about this. Keith, founder of Relex Capital
Hilden told Forbes that the recent surge in Bitcoin prices is more of a speculative move as the market attempts to regain balance.