🔍 Why Interest Rate Cuts Matter for Crypto:
✅ 1. Lower Rates = Cheaper Borrowing
• Investors and institutions can borrow money at lower costs
• More liquidity flows into riskier assets like crypto, stocks, and tech
✅ 2. Weaker USD = Stronger Crypto
• Rate cuts weaken the U.S. dollar
• Bitcoin and other cryptos often rally when USD loses strength
✅ 3. Risk-On Sentiment
• Crypto is a “risk-on” asset class
• When the Fed cuts rates, markets typically shift from “safe” assets (like bonds) to growth and speculative assets — including crypto
⸻
📈 Historical Examples:
• March 2020: After Fed rate cuts and money printing (QE), Bitcoin began its journey from ~$5k to ~$69k by 2021
• 2023–2024: Hints of future rate cuts sparked altcoin rallies even before actual policy changes
⸻
📉 What If Fed Keeps Rates High?
• Higher interest = tighter liquidity
• Investors prefer safer, yield-generating assets (like Treasury bonds)
• Crypto may face downward pressure or sideways movement
⸻
🧠 Summary:
Rate cuts = bullish for crypto
Because they signal cheaper money, more liquidity, weaker dollar, and a return of risk appetite — all of which help Bitcoin, altcoins, and even meme coins pump.
