$BTC $ETH $BNB

📉 What is a rate cut?

It means that the central bank (like the US Federal Reserve) has decided to reduce the cost of borrowing

The result: banks, companies, and individuals can obtain cheaper loans → increased liquidity in the economy

💡 How does this affect cryptocurrencies?

1. Increased liquidity = support for high-risk assets

When money is cheaper, investors look for higher returns than just putting money in banks

This directs liquidity towards stocks and cryptocurrencies

2. Decreased attractiveness of bonds and the dollar

With the rate cut, the yields on bonds and the US dollar weaken

Many investors shift their money to alternatives like Bitcoin as a "store of value" or a hedge

3. Stimulating speculation

In a flexible monetary environment, risk appetite increases

The rise is not limited to Bitcoin but extends to altcoins (Ethereum, Solana, and meme coins)

4. Positive psychological effect

The crypto market is very sensitive to expectations

Just the announcement of a "rate cut" signals that the central bank is trying to support the economy, and this immediately translates into rising cryptocurrency prices

A rate cut = positive for cryptocurrencies because it frees up liquidity and supports risk appetite

Usually, Bitcoin leads the rise first, then the money moves towards altcoins

But caution is needed: if the cut comes due to a serious economic crisis, the markets may be negatively affected despite the liquidity