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.

BTC0.17%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
6
Repost
Share

Comment

0/400

SatsStacking

· 3h 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?

View OriginalReply0

GasGoblin

· 3h 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.

View OriginalReply0

GasGasGasBro

· 3h 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?

View OriginalReply0

LuckyHashValue

· 3h 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.

View OriginalReply0

OptionWhisperer

· 3h 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.

View OriginalReply0

YieldWhisperer

· 4h 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

Reply0