When rates fall borrowing becomes less expensive and investors naturally start chasing higher yielding assets instead of leaving their money in low return savings or bonds bitcoin often attracts some of that flow because it’s still viewed as a strong growth play institutions are even more sensitive to this since they control large pools of capital lower borrowing costs allow them to leverage bigger positions which adds more momentum to the market.

There’s also the confidence factor rate cuts usually signal economic support and that optimism tends to push investors toward riskier bets bitcoin benefits in that environment because it thrives when people feel comfortable taking on risk. That said bitcoin doesn’t always behave in sync with traditional markets sometimes it reacts to its own triggers like halving cycles, regulatory shifts, or sudden waves of adoption so while macro policies like interest rates do matter they’re not the only force shaping its price trajectory