Market insights

The U.S. Federal Reserve’s recent decision to pause interest rate hikes—and potentially lower rates in 2024—could provide a boost to crypto prices and related stocks, market observers say.

In an interview this week, BlackRock fund manager Jeffrey Rosenberg described the Fed’s policy pivot as a “green light” for investors. Major stock indexes rallied on the news, with the S&P 500 notching a 1.37% gain.

Analysts say the crypto sector stands to benefit from the more dovish stance as well. Shares of top crypto exchange Coinbase jumped nearly 7.7% following the Fed’s announcement that it may cut interest rates next year.

Still, the upcoming Bitcoin halving in 2024 is seen as the most forceful catalyst on the horizon for the broader crypto complex. The programmed supply cut has preceded parabolic bull runs in past market cycles.