For years analysts and traders have said cooling inflation would benefit the crypto market, yet prices are still down. Cointelegraph explains why.
Investors' risk appetite tends to increase with a lower cost of capital and higher liquidity, creating a favorable scenario for high-growth assets. Consequently, Bitcoin $BTC
and other cryptocurrencies often benefit from such conditions, as more money in circulation typically boosts demand. However, if U.S. inflation appears to be under control, why isn't the cryptocurrency market reacting positively?