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Thoughts on eventual decreasing interest rates on crypto?

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by COINS NEWS 76 Views

So I am well aware we are not quite there yet with decreasing interest rates with the FED slowing increases from .5 to .25% hikes likely to continue until the Summer give or take a season. And even when they stop raising the rates it will still be some time further until they start lowering them.

However, eventually they will be forced to lower the rates as they are just not sustainable long term to be anywhere near as high as they are now.

So that poses the question, what happens when they lower them?

It's a fairly easy to understand logic process that raising rates causes the market to drop as why would you risk your assets on a hopeful 10% return per annum when you could get a risk free 5% return and that when the stock market drops crypto goes with it. We also have the fact that more people / entities with cash are more likely to sit on it rather than invest and wait on the side lines until better economic forecasts.

Does it stand to reason that when the tables are turned we should expect a sudden influx of money into the stock markets with decreasing interest rates? And by further extension an influx into the cryptosphere as well?

submitted by /u/xavierwest888
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