There Could Be an Interest Rate Cut on the Horizon. Here’s How That Might Affect Cryptocurrency Prices.
The U.S. Federal Reserve is facing heavy pressure to cut interest rates. President Donald Trump recently warned that Fed Chairman Jerome Powell’s job could be at risk if he doesn’t cut rates fast.
But let’s set aside all the political undertones and deal-making calculations, and focus on the overarching questions: What happens to cryptocurrency prices if there is a rate cut? And which cryptocurrencies would become most attractive in a lower-rate environment?
The relationship between interest rates and crypto prices
The general rule of thumb is that rising interest rates result in lower crypto prices, while declining interest rates result in higher crypto prices. That might sound simplistic, but when rates…
