Understanding the basic logic of monetary policy interest rate cuts/hikes through a picture Interest rate cuts are the most direct factor affecting liquidity for the cryptocurrency and US stock markets. For better understanding of our brothers, please add this picture. Cutting interest rates by reducing financing costs → releasing liquidity → stimulating investment and consumption → pushing up the prices of risky assets (stocks/cryptocurrency circles) Raising interest rates will increase capital prices → shrink liquidity → curb inflation and overheating → suppress asset valuations. The core path of monetary policy: policy interest rate → market liquidity → corporate/personal credit → asset pricing reassessment → economic expectation adjustment, forming an investment chain effect on the stock market, cryptocurrency circle, bond market, and exchange rate.