You've probably read many times that interest rate cuts usually lead to growth in cryptocurrencies.
But do you know why?
Low-interest environments make traditional investments like bonds less appealing due to lower returns, pushing investors toward riskier assets like cryptocurrencies.
Lower interest rates also make borrowing cheaper, providing extra liquidity, which drives up demand for cryptos.
So, will recent Federal Reserve rate cuts spark a new rally? There are strong arguments for this:
🪙Historically, cryptos perform well after rate cuts and Bitcoin halving.
🪙BTC has held strong since its March ATH, boosting investor confidence.
🪙With the introduction of $BTC and $ETH ETFs, those cryptos are more accessible to buy.
🪙U.S. presidential candidates show support for crypto adoption. The $XRP triumph against the SEC is also an important factor.
However, we can’t be 100% sure:
⚠️ A U.S. recession, while unlikely, is still possible.
⚠️ Uncertainty surrounds the upcoming U.S. presidential election.
⚠️ Geopolitical tensions may impact global markets.
⚠️Historical performance is not a guarantee. And history not quite repeats - Bitcoin hit ATH before halving this cycle, which surprised many.
Hope for the best - but stay informed! 🫡