When you think about it interest rates play into the bigger picture of liquidity in the system when money is tight investors pull back and focus on safer assets but when money is loose they push out into riskier plays like bitcoin so a cut can be the spark for more inflows especially if institutions are already preparing their positions. Another angle is how rate cuts affect the dollar when the dollar weakens people look for hedges and bitcoin sometimes benefits from that shift too its often talked about as digital gold so when fiat looks weaker bitcoin can feel stronger in comparison.

Still there’s a catch rate cuts don’t guarantee a straight move up if confidence in the broader economy falls too much people can actually pull out of risky assets and wait it out so the timing of the cut and the overall mood of the market matter a lot. Its also worth noting that crypto has its own rhythm the halving cycles institutional accumulation and new regulations can sometimes outweigh macro policies completely thats why bitcoin can surge even when rates are high or drop even when rates are cut its unpredictable in that way,on top of that liquidity from global markets not just the us can shift the landscape central banks across different regions cutting or raising rates create ripple effects and crypto tends to absorb those waves in unpredictable ways.