Impact on the Value of the Dollar and Cryptocurrencies
A reduction in interest rates generally weakens the value of the dollar compared to other currencies. A weaker dollar can make assets denominated in other currencies, or in this case, cryptocurrencies, more attractive. Bitcoin, often referred to as “digital gold,” has been seen by some investors as a store of value and a hedge against dollar depreciation.
This phenomenon could further boost demand for Bitcoin and other major cryptocurrencies, driving up their prices and increasing the total capitalization of the crypto market.
