Recently, the Federal Reserve cut interest rates, and Hong Kong quickly followed suit. The secret behind this move is actually not complicated—cutting interest rates essentially makes money cheaper.

When interest rates drop, the cost for companies to borrow decreases, naturally boosting investment; for ordinary people, loan pressure is reduced, and they are more willing to spend. The goal of this combined approach is very clear: to give a strong boost to a weakening economy and avoid falling into a recessionary trap.

Of course, this is also a balancing act—stimulating growth and employment without letting inflation get out of control. For the crypto market, loose liquidity often means funds might flow into risk assets. $BTC and $CFX assets, in this macroeconomic context, are worth paying close attention to.