The Federal Reserve's third interest rate cut in 2024, can XRP and Bitcoin take the opportunity to rebound?
Federal Reserve has cut interest rates again, on December 18, 2024, the benchmark interest rate was lowered by 25 basis points, marking the third rate cut this year. Although rates have been cut, the Federal Reserve also mentioned that further cuts are necessary in the future.
Regarding the interest rate cut, although the effects are not immediate, it is still a significant move by the Federal Reserve to lower rates. However, it is strange that the cryptocurrency market continues to decline before and after the rate cut, 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 all seen significant declines, especially XRP and Solana, which have dropped even more severely.
Logically, a rate cut should be beneficial for financial markets, including cryptocurrencies. However, analyst Min Jung from Presto Labs stated that this rate cut may not have a significant impact on Bitcoin's price.
To make matters worse, Federal Reserve Chairman Powell has also declared that the Federal Reserve does not allow the holding of Bitcoin. Once this statement was made, the cryptocurrency market is likely to tremble again, and prices are expected to drop 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.
Overall, whether the interest rate cut is beneficial or detrimental to cryptocurrencies depends on how the market reacts. Let’s wait and see.
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