How does the US interest rate hike affect the cryptocurrency market? After raising the rate by 25 basis points
The US Federal Reserve recently cut interest rates by 25 basis points (0.25%) during its last meeting in December 2024. This cut is part of a series of cuts aimed at boosting economic growth and confronting a potential slowdown, while continuing efforts to control inflation, which is approaching the bank’s target of 2%.
This is the second cut in 2024, and reflects a less hawkish approach compared to previous periods, with a focus on supporting employment and economic activity while maintaining price stability.
Rate hikes put pressure on the cryptocurrency market, especially in the short term, but may provide opportunities for investors looking to buy currencies at low levels. However, the overall impact remains dependent on the market and investors’ response to the new monetary policies.
