Why cryptocurrency and financial technology are primed for a rate cut

Bitcoin (BTC-USD) hit its highest level in three weeks as the crypto industry waits for the Federal Reserve to cut interest rates for the first time in four years. Devin Ryan, who is in charge of research in financial technology at Citizens JMP, talked about how the crypto market might respond to the Fed’s easing cycle on Market Domination.

Ryan talked about how unstable the crypto business was before the Federal Reserve meeting in September and the election in November. He said that while a rate cut would be good for crypto, there are still a lot of unknowns about how a Harris administration might affect things.

After the rate cut, if Fed Chair Jerome Powell takes a more “dovish” stance, risky investments like crypto and fintech could do very well. Ryan said that rising interest rates have caused a lot of problems for fintech over the last two years, but that a move toward lower rates might make things better.

Ryan said, “Bitcoin has done well for different reasons.” He added that a rate cut might lead to more transactions in the crypto environment. These changes that make things more “risk-on” could help fintech and digital assets grow even more.