How Will Fed Rate Cuts Shape Crypto Payroll Demand?
As the Federal Reserve hints at rate cuts, what will be the implications for crypto payroll?
J.P. Morgan forecasts at least two rate cuts in 2025, spurred by job market weaknesses and inflation considerations. Historically, lower rates tend to sway investor preferences towards riskier assets, including cryptocurrencies like Bitcoin and Ethereum.
How will rate cuts shape crypto demand?
When interest rates fall, traditional investments generate lower returns. This usually leads investors to explore riskier assets, including cryptocurrencies. This could push Decentralized Finance and Layer 1 cryptocurrencies upward, as traders speculate on heightened liquidity and market engagement. The patterns of previous cycles suggest that BTC and ETH…
