Cointelegraph analyzed that if the U.S. stock market undergoes a significant correction, the Federal Reserve's (Fed) market intervention could positively impact the cryptocurrency market, including BTC. The media explained, "The market capitalization of the U.S. stock market has increased by 68% over the past five years, and this year alone, the market cap has grown by approximately $6 trillion. If a correction occurs, the Fed could break decades of tradition and implement interest rate cuts, balance sheet expansion, and even purchase specific ETFs to stabilize the stock market. This is because the stock market is too large and important to be allowed to fail. As 58% of Americans own stocks, political pressure to prevent the stock market from falling into a prolonged bear market will become very strong." It further predicted, "The prices of cryptocurrencies, including BTC, are significantly influenced by dollar liquidity, real interest rates, and investor sentiment towards risk assets. Moreover, if the market trusts policymakers' willingness to defend risk assets, risk premiums will decrease, and consequently, BTC and major cryptocurrencies could benefit from improved liquidity and a recovery in risk appetite."
