The Bank of England (BOE) has just cut interest rates for the fifth time since August 2024, down to 4%, in the context of slight inflation increase (3.6%) and rising unemployment (4.7%). This is a 'balancing' move to support growth while still controlling inflation, expected to decrease to 2% by 2027.
Impact on the crypto market:
Low interest rates increase liquidity, encouraging money to flow into risky assets like Bitcoin and altcoins.
Venture capital funds are tending to disburse more strongly into blockchain projects.
Falling bond yields are causing investors to turn to crypto as a high-yield refuge.
Could the Fed be the next link?
The probability of the Fed cutting interest rates in September 2024 is reaching 93% (CME FedWatch Tool). Some Fed leaders like Mary Daly and Neel Kashkari believe that hesitation will harm growth and the labor market.
The main message for investors:
Lower interest rates = positive signal for crypto, but risks are also increasing.
The monetary easing cycle is creating opportunities for a new wave of growth.
Investors need to closely follow macro policies and allocate capital more flexibly.
