Insight Investment predicts a US interest rate cut next year, which may affect liquidity and risk appetite for investment assets, including cryptocurrencies.
Expectations of US Rate Cuts
On July 8th, Insight Investment's Brendan Murphy suggested a probable cut in US interest rates next year. While specific dates and figures were not mentioned, this announcement prompted various interpretations within the industry.
Impact on Crypto Liquidity
A rate cut could enhance liquidity and risk appetite, affecting both traditional and crypto markets. Historically, rate cuts have resulted in increased demand for cryptocurrencies like Bitcoin and Ethereum due to lower bond yields pushing capital into these assets.
Historical Data and Market Trends
According to CoinMarketCap, as of July 8, 2025, Bitcoin's price is $108,340.66, with a market cap of $2.15 trillion. Over the past 90 days, Bitcoin has risen by 40.16%. Research indicates that future rate reductions may boost DeFi activity, consequently increasing the adoption of digital assets.
The potential US interest rate cut raises concern and interest in the cryptocurrency market. Expected changes may lead to significant implications for both traditional finance and crypto investors.
