So far (June 2025), there are no clear signals that the US central bank (Federal Reserve) has decided to directly cut interest rates, but it is facing increasing pressure to do so, due to:
The slowdown in US economic growth.
Relative stability of the inflation rate.
Political and market pressures demand easing of monetary policies.
If the Fed decides to lower interest rates, what impact will that have on cryptocurrencies?
1. Increased liquidity and investment in high-risk assets:
A decrease in interest rates means borrowing becomes cheaper, and liquidity increases.
Investors often seek higher returns, thus turning to stocks and cryptocurrencies.
This leads to a rise in cryptocurrency prices.
2. The weakness of the US dollar:
Lowering interest rates usually leads to a decrease in the value of the dollar.
This makes Bitcoin and other cryptocurrencies more attractive as a 'store of value', driving more investors towards them.
3. The return of speculative appetite:
Markets tend to take risks in a low-interest environment.
Thus, small-cap coins (Altcoins) may experience rapid upward waves.
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Summary:
A reduction in US interest rates (if it happens) would be very positive news for the cryptocurrency market and could trigger a new upward wave, especially in Bitcoin, Ethereum, and strong project coins.
