After the most dangerous crash in history now some relief is coming in the market. After a long time we got to see some good news whose effect is happening on the market. What is the news? Obviously, it is the FED rate cut. Which is good news for all financial markets and we can see a good upward movement.
Jerome Powell mentioned in his speech yesterday that this is the second time this year that the rate cut is happening, its real purpose is to control inflation and strengthen the economy. This is good news and promising for the crypto market.
What actually is the FED rate? It is the interest rate that banks give to their customers. The interest rate is extremely important for investors because by looking at it investors decide about their investment.
When we see that the interest rate increases then it has a bad effect on the market and when the interest rate decreases then it has a good effect on the market. What is the logic behind it? In very simple words when the interest rate increases then investors deposit their money in the bank to take benefit from interest and in the same way when the interest rate decreases then investors withdraw their money and put it in other markets to earn better earnings.
By the decrease of the interest rate many investors move towards Crypto, Stocks or other similar financial markets. Yesterday when the FED rate cut was announced then the market suddenly boomed to the upside which indicated that investors are very happy with this news.
Will FED rate will cut further in DECEMBER?
With a decrease of 0.25 basis points the FED rate has reached from 3.75% - 4%. This is the second rate cut of this year. Further Jerome said in his speech that there is less possibility of a rate cut in December and there is a possibility to remain at the same rate for the long time (another good statement)
In my view, the decrease of the FED rate in this situation is extremely great. Because the market is very down at this time and altseason has not started yet, a recent crash has already happened, investors are withdrawing from banks towards crypto and other financial markets. Therefore a good move can be seen.
Especially altcoins can get a good move. The next 2 months will remain extremely positive and this news will have a good effect on the market. It is expected that the beginning of altseason is this news itself.
Do you think the FED news will have a good effect on the market? Will altcoins perform well with this news? Express your opinion in the comment section.
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