The FED made its first interest rate cut in September after a long break. Experts expect the FED to continue reducing interest rates, while these reductions are expected to be Ethereum$ETH
It is expected to have a positive impact on the (ETH) price.
Digital asset company FalconX stated in its latest report that the price of ETH could rise if the US interest rate cuts continue. FalconX expects Ethereum staking returns to exceed US interest rates next year, creating new opportunities for investors. It stated that this could increase demand by making the Ethereum network more attractive for staking.
The company emphasized that they expect more rate cuts from the FED in the next few quarters and therefore interest rates will fall. FalconX suggested that ETH staking returns are currently at around 3.2% and the gap between them and US interest rates will narrow.
Noting that US interest rates are expected to fall below 3.75% by March 2025, FalconX said, “ETH staking returns may become more competitive and this may attract more investors. This has the potential to increase prices.”
FalconX head of research David Lawant noted the following about Ethereum: “We have yet to observe how the Ethereum price compares to interest rates in a full crypto bull market. ETH staking rates remained significantly high during the bear market of late 2022. However, the current bull market could produce higher staking rewards, which could significantly increase the price.”
Ethereum, which has lost 1.5% in value in the last 24 hours, is trading at $2,600 at the time of writing.
