This Wednesday is a key day, especially due to the interest rate decision in the United States.
✅ If interest rates fall, it is positive for Cryptos and risk assets.
✖️ If they keep rates high, it is negative for Cryptos and risk assets.
Because?
1- High interest rates make borrowing money more expensive, reducing investments in risky assets.
2- Low interest rates make Cryptos more attractive compared to traditional investments. By lowering interest rates, treasury bills, fixed terms and remunerated accounts, lower their % remuneration and become less attractive compared to the Crypto world.
3- High interest rates increase fear, decreasing the demand for Cryptocurrencies.
4- In market sentiment, increases in interest rates are usually seen as an effort to cool the economy, reducing investment in risk assets.
