Analysis: If the Fed props up US stocks, the crypto market may benefit from liquidity injection

CoinFeed July 9 news, according to Cointelegraph, the US stock market has grown by 68% over the past five years, adding about $6 trillion in market value this year, with 58% of Americans holding stocks. Analysts warn that if the stock market undergoes a major correction, the Fed may break decades of precedent by propping up the market through measures such as buying stock ETFs. Bitget Wallet COO Alvin Kan said that once the Fed intervenes (rate cuts, balance sheet expansion, or even ETF purchases), the crypto market historically tends to enter a medium- to long-term upward trend, as risk appetite recovers and capital flows back to high-beta assets. HashKey senior researcher Tim Sun pointed out that the macro pricing of crypto assets remains linked to dollar liquidity, real interest rates, and stock market risk sentiment; once the market is convinced of a policy bottom, the risk premium of high-volatility assets will compress, benefiting Bitcoin and mainstream crypto assets.