CandleFocus

FED's Continuation of Interest Rate Cuts Will Benefit Ethereum (ETH) More! Here's Why!

The Federal Reserve (FED) recently made its first interest rate cut in September, and experts believe that further interest rate cuts will have a positive impact on the price of Ethereum (ETH). Digital asset firm FalconX predicts that if US interest rate cuts continue, the price of ETH will rise. FalconX expects Ethereum staking returns to outpace US interest rates next year, making the Ethereum network more attractive for staking and potentially increasing the price of ETH due to increased demand. They anticipate that as US rates fall, the yield gap between US interest rates and ETH staking yields will narrow, making ETH staking more competitive and attracting more investors. David Lawant, head of research at FalconX, believes that the current crypto bull market could lead to even higher staking rewards, which would significantly increase the price of Ethereum. At the time of writing, Ethereum is trading at $2,600, experiencing a 1.5% decrease in the last 24 hours.

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