The Federal Reserve has cut interest rates for the third time in 2024. Can XRP and Bitcoin take the opportunity to rebound?
The Federal Reserve has cut interest rates again. On December 18, 2024, the benchmark rate was lowered by 25 basis points, marking the third rate cut this year. Although rates have been cut, the Fed also stated that further cuts are necessary in the future.
Rate cuts, while not immediately effective, are still a significant move by the Fed to lower rates. However, it is strange that the cryptocurrency market continues to decline both before and after the rate cuts, showing no signs of recovery.
According to data from Coinmarketcap, the entire cryptocurrency market has dropped by 2.62%. Major cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana have also seen significant declines, especially XRP and Solana, which have dropped even more sharply.
Logically, rate cuts should be beneficial for financial markets, including cryptocurrencies. However, Min Jung, an analyst at Presto Labs, stated that this rate cut may not have much impact on Bitcoin prices.
To make matters worse, Fed Chairman Powell has stated that the Fed does not allow the holding of Bitcoin. With this statement, the cryptocurrency market is likely to shake again, and prices may continue to fall in the coming days.
However, some analysts believe that this rate cut could be a turning point, allowing the recently declining prices to recover quickly.
In summary, whether rate cuts are beneficial or detrimental to cryptocurrencies will depend on how the market reacts. Let's wait and see.
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