Recently, the news of interest rate cuts has sparked widespread attention in the market, but many people may not fully understand the far-reaching implications for the Crypto Assets sector. As an investor who has experienced the last bull run, I would like to share some insights.

Interest rate cuts essentially mean an increase in market liquidity. When the returns on traditional investment channels decrease, a large amount of capital will seek high-risk, high-return investment opportunities, which include the Crypto Assets market.

Looking back to March 2020, influenced by global economic uncertainty, Bitcoin once fell to $3,800. However, as central banks around the world adopted loose monetary policies, a large amount of capital flowed into the encryption market, triggering an astonishing rally.

Ethereum surged from $80 to a peak of $4800, while Bitcoin rebounded from its lows, breaking through the $69000 barrier. Meanwhile, many small Crypto Assets also experienced explosive growth, with Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) projects thriving.

This bull run has not only brought tremendous wealth effects but also promoted innovation and development throughout the industry. However, investors need to recognize that market cycles are objectively present, and excessive speculation may bring risks.

Looking ahead, if a new round of interest rate cuts arrives, we may witness similar market reactions again. However, it is important to view this rationally, manage risks properly, and follow those projects and technological innovations that can truly bring long-term value to the industry.