Chris Aruliah, Head of Institutional Business at Bybit: Fed rate cuts could boost cryptocurrency markets in the short term

Chris Aruliah, head of institutional business at Bybit, commented on the Federal Reserve's interest rate cut, saying that historically, lower interest rates have usually led to capital inflows from banks into the stock market, and lower interest rates have reduced the returns on traditional investment instruments and prompted more investment flows. Riskier assets, including digital currencies. Against this backdrop, we expect that the recent Federal Reserve interest rate cuts may encourage investment sentiment in the market, encouraging retail and institutional investors to diversify their portfolio risks by investing in cryptocurrencies. However, the global economic slowdown coupled with various weak economic indicators and geopolitical complications have simultaneously dampened investor sentiment. Therefore, a 0.5% reduction in the Federal Reserve’s policy rate may stimulate the cryptocurrency market in the short term, but in an environment of economic uncertainty and market volatility, remaining vigilant remains critical. We encourage investors to pay attention to and participate in updates of market information in real time and jointly cope with the changing investment environment.