📈 Expected liquidity and a strong boost for cryptocurrencies with interest rate cut predictions
Michelle Bowman, a member of the Board of Governors of the U.S. Federal Reserve, confirmed that recent developments in weak employment data reflect the fragility of the labor market, supporting her view that interest rates need to be cut three times during the current year.
Bowman explained that delaying stimulus measures could exacerbate the economic slowdown, pointing out that early action would be the optimal choice to alleviate pressures and support economic activity.
📌 The impact on cryptocurrencies:
Lowering interest rates means increased liquidity in the markets, which could positively affect high-risk assets, primarily Bitcoin and Ethereum.
Expectations of monetary easing often enhance investor appetite for crypto as an alternative refuge against inflation and accommodative monetary policies.
Markets may witness a new buying wave if the Fed confirms the timeline for these cuts.
💡 Conclusion: Any official confirmation of the start of an interest rate cut cycle could be the spark that drives cryptocurrencies to new peaks in the upcoming months.