Why is the crypto market continuing its downward spiral despite the Federal Reserve’s continuous interest rate cuts?
Original author: Yuuki, TechFlow
TL;DR
The recent market downturn is attributed to a combination of factors: short-term macroeconomic headwinds, the industry black swan event of October 11th, and competition for funds among the stock markets of the US, South Korea, and China. In the long term, the Fed’s preventative interest rate cuts and the resulting mild liquidity injections have not generated as much buying pressure as the new issuance of crypto assets and the unlocking of tokens have generated selling pressure. This has resulted in an increase in the total market capitalization of cryptocurrencies, but a decline in the prices of most cryptocurrencies, creating a perceived bear market for secondary market investors.
In the short…
