CRYPTO MARKET IS ABOUT TO WELCOME NEW CASH FLOWS?#BTC🔥🔥🔥🔥
Recently, interest rate cuts have been taking place in major European economies, such as the Swiss bank down to 1.5% or there is also news that the US Federal Reserve (FED) will also cut interest rates. interest rates later this year.
So we wonder what the interest rate cut is and why does it have such an impact on the crypto market?
To explain simply, the interest rate cut here is the deposit interest rate to minimize the flow of money circulating in the market to curb inflation. For example, we have money if the bank has a deposit interest rate. If the bank interest rate is high, we will not risk investing and instead will deposit it in the bank to earn a certain profit. However, if the bank interest rate decreases, some depositors will withdraw because they think the bank interest rate will decrease. Such goods are too few and grow too slowly. They bring cash flow out to buy gold or crypto land. Then new money will flow into the market. The market has new cash flow and will increase, then prices will also increase. Like We can see that stocks or crypto have had positive developments.
However, this is not a really good sign for crypto because when they have money, investors will focus on investing in fixed and existing assets (Houses, land, gold, silver...) rather than real estate. Intangible and future assets (Crypto). But in the future when those intangible assets (Crypto) are identified as tangible assets like (gold), there will be no Cryptocurrency as the final investment channel. same investment portfolio.