The Bank of Canada has officially cut interest rates by 25 basis points, marking a clear shift in its monetary stance. Traders and analysts are now betting that the U.S. Federal Reserve will follow with a similar move. Such synchronized action from two of the world’s most influential central banks could have powerful ripple effects across global markets.
Lower rates reduce borrowing costs, stimulate spending, and inject liquidity into the system. This influx of capital often flows into risk assets such as stocks and cryptocurrencies, giving them strong upside potential. For crypto specifically, where liquidity plays a critical role, this environment could trigger fresh rallies as investors search for higher returns.
If the Fed confirms its own rate cut, we may witness a decisive shift in market sentiment, turning cautious optimism into a full-on risk-on rally. $BTC $ETH $SOL