When monetary policy shifts toward rate cuts, we typically see capital flows into risk assets—and Bitcoin benefits from this cycle. Lower interest rate expectations make fiat-denominated assets less attractive, driving investors toward alternative stores of value. The spillover effect is real: as the borrowing cost environment improves, consumer purchasing power increases, benefiting sectors from real estate mortgages to equity markets. This interconnected dynamic—tighter monetary conditions cooling, BTC catching tailwinds, and everyday credit becoming more accessible—explains why periods of anticipated rate cuts often align with cryptocurrency appreciation.