Fed Rate Cut Impact on Cryptocurrency Prices Expected to be Limited

According to BlockBeats, on December 16, GCash's Head of Cryptocurrency, Luis Buenaventura, stated that the anticipated Federal Reserve rate cut this month has already been factored into the market, suggesting that the policy adjustment will have a limited direct impact on cryptocurrency prices. Historical data indicates that when Bitcoin experiences a 50% increase over 60 days, there is approximately a two-thirds chance of an additional 35% increase in the following two months.Neal Wen, Global Business Development Director at Kronos Research, added that in a low-interest-rate environment, institutional investors are inclined to consider crypto assets as an alternative to traditional investments. Meanwhile, Min Jung, a research analyst at Presto Labs, highlighted that the market's attention has shifted to Federal Reserve Chair Jerome Powell's policy speech and the latest economic forecast dot plot, which will provide significant guidance for monetary policy direction in 2025.