Why does the Fed’s rate cut matter for crypto?

[kevin1]

Interest rate cuts reduce borrowing costs and expand liquidity, which often pushes investors toward riskier assets like cryptocurrencies. They also weaken the U.S. dollar, making Bitcoin more attractive as a store of value. However, if the cut is viewed as a response to economic weakness, the effect can be negative in the short term.

[Rimon Khan]

Exactly—liquidity injections usually send Bitcoin flying

[Nahid Hossen]

True, but if the cut signals recession fears, markets might dip short-term