Fed pause is a ‘green light’ for investors; here’s what it means for crypto
1 min readA decision from the United States Fed to pause and possibly lower interest rates next year will likely serve as a “positive boost” for cryptocurrencies and crypto stocks.
In a Dec. 13
Teng said investors can expect to see similar bullish trends not seen since previous rate-cute cycles, something that will be amplified by institutional interest in pending spot Bitcoin ETFs, which are currently slated for a decision in early January.
However, Andersson added that a side effect of lower interest rates could be the cooling of the real-world asset (RWA) tokenization narrative, with expected increases in DeFi yields becoming more attractive to investors in a low-rate environment.
“A lot of the interest so far has been in tokenizing treasuries. We now see an environment where we can generate in excess of 10% yield in DeFi while traditional yields are heading the opposite direction,” he added.
Like many market commentators, Teng and Andersson both looked to the upcoming Bitcoin halving — currently slated for April next year — as a major catalyst for overall crypto market growth in 2024.
Magazine: Breaking into Liberland — Dodging guards with inner-tubes, decoys and diplomat