Mr. Zhu's personal analysis is for reference only:


Potential Positive Impact

- Capital inflow: Lower interest rates reduce returns in traditional financial markets, leading investors to potentially shift some funds to the cryptocurrency space in search of higher returns, bringing additional capital to the crypto market and driving up cryptocurrency prices.
- Improved market sentiment: Loose monetary policy conveys signals of economic stimulus, enhancing the overall risk appetite in the market. Investors' confidence in risk assets such as cryptocurrencies has increased, promoting a rise in trading activity.

Potential negative impact

- Macroeconomic uncertainty: Interest rate cuts are often due to economic weakness. If the New Zealand economic situation does not improve due to the rate cuts, it may trigger global economic concerns, leading investors to seek safety and sell off risk assets such as cryptocurrencies.
- Anticipation of strengthened regulation: A large amount of capital flowing into the cryptocurrency market due to interest rate cuts may attract the attention of regulatory agencies, prompting them to strengthen regulation of the cryptocurrency market, increasing market uncertainty and suppressing price increases. #币圈#
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