What this means: 1. Credit becomes cheaper → businesses and people can borrow money more easily. 2. More “cheap” money enters the system → liquidity increases (more money in circulation). 2. When there is more money, investors start taking more risks → some of the capital goes into risky assets, for example, into cryptocurrency. Therefore, a rate cut could be a positive signal for the crypto market.
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#Fed Cuts Rates By 25 Bps #Gate Square Mid Autumn Creator Incentive The Federal Reserve (the US central bank) has cut its key interest rate by 25 basis points (i.e. 0.25%). It is now 4.00%–4.25%.
What this means: 1. Credit becomes cheaper → businesses and people can borrow money more easily. 2. More “cheap” money enters the system → liquidity increases (more money in circulation). 2. When there is more money, investors start taking more risks → some of the capital goes into risky assets, for example, into cryptocurrency.
Therefore, a rate cut could be a positive signal for the crypto market.