Crypto Rebound: Rate Cut's Impact & Market Outlook
Update: 2025-12-12
Description
Crypto markets experienced a minor uptick following the Federal Reserves third interest rate cut of the year. Analysts predict a more significant bounce could be coming, as each rate cut has historically led to a short-term sell-off, followed by a recovery. Lower rates typically boost risk-taking and capital flow into speculative assets like crypto. Despite a slightly cautious outlook from the Fed, the markets viewed the news positively, with US stocks rising and Bitcoin rebounding alongside broader market sentiment.
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