US Fed Rate Cuts: What They Mean for Crypto and Stocks
Antara Bhattacharyya
Why the Fed Cuts Rates: When inflation cools or growth slows, the Federal Reserve lowers interest rates to stimulate borrowing, spending, investment, and overall economic momentum.
Impact on Stock Markets: Rate cuts reduce borrowing costs, boost corporate profits, and often drive investors toward equities, supporting rallies across major stock indices.
Effect on Crypto Markets: Lower interest rates weaken the dollar and increase liquidity, encouraging investors to allocate more funds into Bitcoin and altcoins.
Bond Yields and Risk Appetite: Falling rates typically lower bond yields, pushing investors toward higher risk assets like growth stocks and cryptocurrencies.
Long-Term Market Outlook: Sustained rate cuts can fuel bullish cycles, but excessive easing may spark inflation concerns and renewed market volatility.