The impact of the lower interest rate decision issued by the US Federal Reserve, this may affect the digital currency market, including Bitcoin, in several ways:
1. Increased demand: - Cost of borrowing: Low interest rates make borrowing less expensive, which may encourage investors to use borrowed funds to invest in assets such as Bitcoin. - Stimulating investment: Lower interest rates may increase liquidity in the market, enhancing demand for risky assets.
2. Shifting from traditional assets: - The trend towards digital assets: With lower returns on bonds and traditional assets, investors may look for higher returns in digital currencies.
3. - It may reduce the increase in expectations to an increase, which investors in value-preserving assets such as Bitcoin consider.
4. Price fluctuations: - Increased volatility: Increased demand for Bitcoin may lead to greater price fluctuations.
5. Psychological effects: - Confidence in the market: Lower interest rates may enhance confidence in the market, prompting more investors to enter the world of digital currencies.
6. Institutional investments: - Greater investments: as economic conditions improve.