The Federal Reserve may announce a rate cut at its upcoming meeting, with only 5 days to go before the decision.
Historically, rate cuts are usually accompanied by the following effects:
Increased liquidity
Decrease in borrowing costs
Increased risk tolerance in the cryptocurrency space
Potential for a rebound in cryptocurrency prices
History shows that rate cuts have a positive impact on the market as a whole, and on the cryptocurrency market in particular.
Remember the market crash during the 2020 pandemic and its subsequent surge? At that time, the Federal Reserve slashed interest rates, injected a lot of liquidity into the market, and drove a strong rise in Bitcoin and other assets.
Given the current macroeconomic situation, if the Federal Reserve cuts interest rates in September this year, it may create conditions for a new round of strong market gains.
