The US Federal Reserve is preparing for a major decision – the first interest rate cut in 2024. This event could be a real catalyst for the cryptocurrency market. Historically, such measures have led to a significant increase in investor interest in risky assets, and cryptocurrencies such as Bitcoin and Ethereum have always been in the spotlight.
In 2020, when the Fed also eased its policy, Bitcoin soared to new heights. As rates fall, something similar is expected: more liquidity in the markets and a rise in the value of key cryptocurrencies. This could be especially important for investors looking to find bargains in a low-rate environment.
Additionally, the Fed’s rate cuts could revive interest in decentralized finance protocols (DeFi). Increased liquidity and access to cheap credit will open the door for new projects and investors looking to get the most out of their investment.
While the exact implications are still hard to predict, one thing is clear: the Fed’s September decision could have a significant impact on the entire crypto market, setting the tone for months to come. It will be a milestone that everyone from retail investors to large institutional players will be watching.
