Federal Reserve cuts interest rates for the third time in 2024, can XRP and Bitcoin rebound?
The 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 has also mentioned that further cuts are necessary.
Rate cuts may not have an immediate effect, but at least it's a significant move by the Federal Reserve to lower rates. However, it’s 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 also seen significant declines, particularly XRP and Solana, which have dropped even more sharply.
Logically, rate cuts should be beneficial for the financial market, including cryptocurrencies. However, Min Jung, an analyst from Presto Labs, stated that this rate cut may have little impact on Bitcoin prices.
Worse still, Federal Reserve Chairman Powell has also stated that the Federal Reserve does not allow holding Bitcoin. With this announcement, the cryptocurrency market is likely to shake again, and prices may continue to fall in the coming days.
Nonetheless, some analysts believe that this rate cut could be a turning point, enabling recently fallen prices to rebound quickly.
Overall, whether the rate cut is beneficial or detrimental to cryptocurrencies will depend on how the market reacts. Let's wait and see.
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