Past rate cuts indicate potential crypto bull market catalyst — 21Shares
The Federal Reserve is expected to begin lowering its benchmark interest rate in September.
Speaking at the annual Jackson Hole Symposium, Federal Reserve Chairman Jerome Powell sent his strongest signal yet that interest rate cuts are on the immediate horizon. The price of Bitcoin (BTC) rallied past $63,000 on the news, and analysts think further gains are expected when the Fed begins cutting rates.
Leena ElDeeb, a researcher at exchange-traded product issuer 21Shares, explained that previous interest rate cuts were good for the price appreciation of digital assets, as investors with cheaper access to loans take invest in risk-on asset classes. In a statement to Cointelegraph, the analyst gave a specific example of a previous rate cut at the beginning of the Covid-19 pandemic:
ElDeeb qualified her statements by explaining that while past performance is not a guarantee of future results, the March 2020 interest rate cuts could provide a benchmark to compare the likely effects of the impending rate cut on crypto markets.
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Author: Vince Quill
