Crypto Talk | US election and interest rate cuts may reshape the future of Bitcoin, says BuyUcoin CEO
In an exclusive interview with ETMarkets, Shivam Thakral, CEO of BuyUcoin, highlighted how the upcoming 2024 US presidential election and recent interest rate cuts by the Federal Reserve could reshape the cryptocurrency market. He noted that the 50 basis point rate cut is likely to boost investor interest in cryptocurrencies, while the increasing political influence of younger, pro-crypto voters may lead to significant policy shifts.
With the recent 50 bps interest rate cut by the US Federal Reserve, how do you expect this to impact the crypto market in both the short and long term? Do you anticipate increased investor appetite for riskier assets like cryptocurrencies?
I believe the recent 50 basis point interest rate cut by the US Federal Reserve will positively impact the crypto market both in the short and long term because interest rate cuts are aimed at stimulating economic growth by making borrowing cheaper and seeking higher returns in the crypto market. In the short term, the interest rate cut will attract significant investors' sentiments and increase liquidity in the financial system. The increased financial liquidity will rise the demand in the market. To earn more profit, investors may opt for different cryptocurrencies.
If we talk in the long term, it will attract institutional investors and prompt regulatory developments. This environment fosters greater market stability and legitimacy, potentially solidifying cryptocurrencies as a mainstream asset class in the long term.
