Chris Aruliah, head of institutional business at Bybit, commented on the Federal Reserve's interest rate cut, saying that historically, lower interest rates have usually led to capital inflows from banks into the stock market, and lower interest rates have reduced the returns on traditional investment instruments and prompted more investment flows. Riskier assets, including digital currencies.
Against this backdrop, we expect the recent Fed rate cuts may boost market sentiment and encourage both retail and institutional investors to diversify their portfolios by investing in cryptocurrencies.
However, the global economic slowdown coupled with various weak economic indicators and geopolitical complexities have simultaneously hit investor sentiment.
Therefore, a 0.5% reduction in the Fed’s policy rate may provide a short-term boost to the cryptocurrency market, but in an environment of economic uncertainty and market volatility, it remains critical to remain vigilant.
We encourage investors to pay attention to and participate in the update of market information in real time and jointly cope with the changing investment environment. #crypto2023A