If the floodgates are opened at a high level, there will be two problems:
1. High inflation will return;
2. When the market truly faces a crisis, collapse, or recession, what will be used to save it? Continuing to print more money on a larger scale? This is certainly unreliable and will only lead to a collapse of credit, currency devaluation, and persistently higher inflation.
A moderate interest rate cut to prevent economic issues is reasonable.
Therefore, at this stage, cutting interest rates does not mean flooding the market; it is merely appropriate regulation, and high interest rates will still be maintained in the long term.
In conclusion, a brief summary of the imitation season and interest rate cut logic:
The decentralization and lack of innovation in the cryptocurrency market: As the number of cryptocurrencies increases, the dispersion of funds will indeed affect the overall market performance. In the future, there may be structural and localized increases rather than a comprehensive surge.
Expectations of interest rate cuts: Cutting interest rates does not mean flooding the market; this point is very important. The purpose of cutting interest rates is to prevent economic depression, not to stimulate the market. Appropriate interest rate cuts in a high-interest environment are to prevent excessive economic tightening, not to trigger a new round of inflation.
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