This Crypto May Skyrocket after Interest Rate Cuts

The crypto market may be looking low right now, with losses between 10% and 15% for some coins over the last week, but one crypto token is poised to benefit from interest rate cuts hit.

The Federal Reserve will be slashing interest rates for the first time this year later this month. The cuts have been a long time in coming, constantly delayed throughout 2024. The crypto market is not responding very positively to these impending cuts, but one token might do very well once those cuts go into effect.

Not only are cuts coming in September, but more should come in 2025 as well. If the market is already being affected by these cuts before they even start, then imagine the impact they will have next year.

Which Coin Could Go Bullish?

Bitcoin could be uniquely positioned to take advantage of the rate cuts and the effect they will have on the market. As the economy experiences lower interest rates and higher liquidity, Bitcoin could be a good option for investors who are ready to deal with assets that have some risk attached to them.

Bitcoin actually does very well in markets where the liquidity is high. The coin shot up when interest rates were cut from 2020-2022. In that period, Bitcoin saw an increase of 375%, and it could pull off a similar feat over the next year or so as interest rates are cut again.

Bitcoin also serves as a great hedge against inflation. When inflation rises dramatically, as it has over the last few years, Bitcoin has an inflation-resistant framework thanks to its limited supply of coins. The

The recent Bitcoin halving event means that it is now harder than ever for Bitcoin miners to produce bitcoins, and that helps the value of the coin, making it rarer for new coins to appear. This could give Bitcoin the edge it needs to grow rapidly while other tokens are struggling under the new interest rate cuts.