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✅ What is the effect of low inflation in the USA on crypto?

Let’s break it down in simple terms:

📉 1. Lower inflation increases chances of interest rate cuts

When inflation is low, the Federal Reserve (US central bank) may decide to cut interest rates.

That means:

🔹 Borrowing money becomes cheaper

🔹 Investment activity increases

🔹 People are more willing to invest in risk assets like crypto

➡️ Result:

💥 The crypto market can become bullish (prices may rise)

📊 For example:

If Bitcoin or Ethereum prices were under pressure due to high interest rates, a dovish (soft) move by the Fed can lead to price pumps.

Altcoins can also benefit during such periods.

⚠️ But caution:

Even though inflation has decreased, the Fed has not yet fully reduced interest rates.

And if inflation rises again in the coming months, crypto markets could come under pressure again.