The Federal Reserve's adjustments to monetary policy have always been a barometer for the global economy, with interest rate cuts being particularly noteworthy. Looking back in recent years, the changes in the Federal Reserve's policies are closely linked to the fluctuations in the encryption currency market.

In 2020, the COVID-19 pandemic swept across the globe, causing turmoil in the financial markets. The prices of major cryptocurrencies such as Bitcoin plummeted significantly. In response to the crisis, the Federal Reserve took emergency measures to cut interest rates and injected liquidity into the market. This action indirectly drove some funds into the field of encryption, promoting the prosperity of the cryptocurrency market between 2020 and 2021, benefiting many investors.

However, at the end of 2021, the Federal Reserve shifted to an interest rate hike policy, leading to a return of funds to the traditional financial sector. The cryptocurrency market subsequently suffered a heavy blow, with mainstream coins like Bitcoin experiencing a sharp price drop, while niche coins faced even more severe losses. This policy shift triggered a downturn in the cryptocurrency market that lasted for more than three years.

In September 2024, the Federal Reserve cut interest rates again, injecting new liquidity into the market. This move attracted some overseas investors and high-risk enthusiasts to return to the encryption currency market, driving up the prices of digital assets like Bitcoin and significantly increasing market activity.

Currently, the Federal Reserve is preparing to cut interest rates again after stopping the rate cuts for 9 months. Although it may be difficult to replicate the extreme surge of last September, the market is expected to gradually warm up, and prices may show an upward trend.

According to market analysis, it is expected that from the end of September to early October this year, the encryption currency market may start a new round of rising cycle. In the next two to three years, the market is expected to rebound from the bottom, providing investors with relatively significant return opportunities. However, it is important to note that the encryption currency market has always been highly volatile, with many uncertainties, and market trends are influenced by various complex factors.

With the overall economy rebounding from the bottom, a relatively favorable economic environment may be welcomed in the coming years. However, investors still need to closely monitor market dynamics and seize the right entry opportunities. In this market filled with opportunities and challenges, maintaining a cautiously optimistic attitude is crucial.