ETC Group Research Head André Dragosch predicted that the FED’s statements regarding interest rate policy could benefit the cryptocurrency industry.
The US Federal Reserve both late last year and recently 3 interest rate cuts this year He signaled that he would do it. On the other hand, FED President Jerome Powell gave a precautionary easing message in his last statement and said that the interest rate reduction will not be possible. It could happen in May, not March. hinted.
He made a statement to The Block about the issue. André DragoschThe impact of the FED’s interest rate reduction policy on risk product markets, including cryptocurrencies. may reflect positively expressed. On the other hand, the experienced name called on investors to be cautious and said that the postponement to May was primarily a factor in the market. can create sales pressure reminded.
The longer the rate cut keeps all interest rates at current levels, the more likely we are to see some sort of ‘crash’ or credit event within the regional banking system, particularly among institutions with significant exposure to US commercial real estate. On the other hand, a move to May may bring sales in Bitcoin and cryptocurrencies. This place is not clear yet.