
The FED, which started the interest rate reduction cycle with a 50 basis point cut in September 2024, has been keeping interest rates constant since January. While Bitcoin and cryptocurrency investors are waiting for the FED to start cutting interest rates to revive the market, US President Donald Trump is also pressuring the FED to cut interest rates. However, FED Chairman Jerome Powell stated in his statements that they are focused on a permanent decrease in inflation and their 2% target, and that they will act according to future economic data for interest rate cuts. Related News: Donald Trump Calls on Powell to Resign! "Agenda: Interest Rate Cut!" While the FED continues its cautious approach, Fitch Ratings, a globally recognized credit rating agency, estimated when the FED will start reducing interest rates. According to Reuters, Fitch said the Fed is likely to cut interest rates in the fourth quarter of 2025. According to Fitch, the Fed is expected to delay cutting interest rates until the fourth quarter of 2025, citing ongoing economic conditions and inflation trends. How Do FED`s Interest Rate Cuts Affect Cryptocurrencies? The Fed’s rate cuts are expected to have a positive impact on Bitcoin and altcoins, as lower interest rates generally make borrowing cheaper, which can lead to increased liquidity in the financial system. Some of this liquidity could flow into higher-risk assets like cryptocurrencies. On the other hand, lower interest rates could weaken the dollar. A weaker dollar could make riskier assets like Bitcoin more attractive to investors, potentially pushing up their prices. Finally, low interest rates generally create a greater sense of risk in the markets. Investors are more willing to take risks, and cryptocurrencies could benefit from this and see a rise. *This is not investment advice. Continue Reading: Fitch Announces When FED Will Start Cutting Interest Rates! How Will Bitcoin and Cryptocurrencies Be Affected?
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
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State of Oregon Prepares Lawsuit Against Coinbase After Withdrawal of Federal SEC Case
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