The policy boost for BTC probably isn’t about rate cuts, or at least it’s coming much earlier than any rate cuts. Here’s why. Some funds borrow money through short-term repos to hold long-term treasury bonds. When financing tightens, these funds need to reduce positions and cash out. When the pressure spreads to other markets, investors holding BTC will also sell off liquid assets to raise cash. This is why, at the early stage of market downturns, BTC often faces selling pressure first. In September, while the Fed raised interest rates, it also promised to maintain ample reserves. This means there are two policy directions: One is to continue using interest rates to curb inflation, and the other is to use liquidity tools to address market disruptions. Policy rates and the functioning of the financing market can be handled separately. At the start of market disruptions, BTC is often sold as a cash source. But once the financing chain gets policy support, the selling pressure from investors cashing out BTC will ease. So, rate cuts might not even be necessary. As long as financing pressure eases, the policy headwinds for BTC will disappear. The era of focusing on interest rates is coming to an end. #BTC #Crypto #Markets