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FED's Interest Rate Cuts Are Driving Bitcoin Higher, But Are Negatively Affecting These Two Altcoins! Here's Why!

The Federal Reserve's surprise interest rate cut has had a positive impact on Bitcoin and other cryptocurrencies, causing their prices to increase. However, this cut has negatively affected stablecoin issuers like Tether and Circle, as they are earning lower yields compared to U.S. Treasury bonds. As a result, stablecoin issuers may be pushed to pursue riskier investments in order to compensate for the decline in income. This has led to Tether losing $488 million and Circle losing $144 million in annual revenue for every 50 basis point rate cut by the Federal Reserve.

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