2026-01-18 18:27:11

When equity markets rally, there's often a case to be made that central banks should ease monetary conditions. The logic goes: strong market performance reflects underlying economic confidence, which should theoretically give policymakers room to reduce rates and support further expansion. This dynamic has major implications for asset allocation across both traditional markets and crypto—rate cycles directly influence capital flows into risk assets like Bitcoin and altcoins. Understanding the interplay between market momentum and policy decisions remains crucial for traders navigating volatile cycles.

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PhantomMiner

· 37m ago

Does the stock market rise mean the central bank has to cut interest rates? That logic seems reversed... --- It's the same old story, every time they say funds will flow into the crypto circle, but in the end, they still get cut. --- I believe the rate cycle affects BTC flow, but is it really that easy to catch the policy inflection point? --- So we still need to keep an eye on every move of the Federal Reserve; the crypto circle is just following the dance. --- Equity rally ≠ central bank easing; this simple correlation is the biggest trap, right? --- The rotation of risk assets has been said before, once last year, but the environment is completely different now. --- The theory sounds good, but how many can actually make money from practical operations... --- Asset allocation always sounds right but is actually full of pitfalls; it still depends on your risk appetite.

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SatsStacking

· 13h ago

When the stock market rises, people shout for the central bank to cut interest rates? This logic is a bit backwards, isn't it? Who should be following whom?

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GasGoblin

· 13h ago

Should interest rates be cut just because the stock market rises? Only a fool would believe that logic; the central bank isn't just following the trend.

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GasGasGasBro

· 14h ago

Damn, the stock market rises and the central bank has to pump liquidity? Can you believe this logic? --- It's the same old story. Who still doesn't know the relationship between interest rates and BTC? --- Market confidence ≠ economic confidence. Stop using this to fool new investors. --- So anytime there's a reason to inject liquidity into crypto... --- Those who understand trading know clearly that they are really watching the Fed's stance, not the stock market's rise or fall. --- What is this guy trying to say? When the capital flow comes, go all in? --- Every time the stock market gets excited, they say the central bank should loosen. Why isn't it rising now?

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LuckyHashValue

· 14h ago

When the stock market is booming, does the central bank have to loosen monetary policy? Actually, that logic is quite far-fetched... It's often the other way around; only when interest rates are cut do cryptocurrencies really take off.

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OptionWhisperer

· 14h ago

Does the stock market go up, then the central bank should loosen monetary policy? That logic always seems a bit off. --- It's the same old rhetoric—market rises mean policies will relax... but reality isn't that simple. --- Basically, it's betting that the central bank will follow suit. We crypto enthusiasts are most into this kind of thinking. --- Whether Bitcoin can go up depends on the mood of various central banks. That's really frustrating. --- Strong market confidence does not equal a policy shift. Don't mistake wishful thinking for analysis. --- Can this theory hold up in the current environment? I'm a bit skeptical.

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YieldWhisperer

· 14h ago

lol the math doesn't check out here... "strong market performance = confidence" is such a convenient narrative. actually traced the wallet flows during last three rallies and capital inflows were already priced in weeks before central banks even *talked* about easing. classic cart-before-the-horse situation tbh

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