Post
Topic
Board Speculation
Re: Bitcoin will fall or not
by
Danica22
on 07/09/2025, 14:55:06 UTC
but I really wonder why an interest rate cut would have such an impact on the market.

Cutting interest rates will lead to a reduction in borrowing costs and with lower borrowing costs, businesses and individuals will tend to borrow more money to spend, do business and invest. Second, as interest rates fall, bank deposits become less attractive. Therefore, investors will tend to invest in speculative investments that can yield higher returns. That is why in a stable economy, gold prices usually fall and lose their appeal, but vice versa. Speculative assets like stocks, bitcoin will be the ones that perform better and lead to price appreciation.

But cutting interest rates doesn't always have a positive impact. It depends, because if interest rates are cut, but the economy still falls into recession. Don't expect speculative assets like bitcoin to grow.