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WisdomTree report: the impact of the Fed rate cut on the crypto market

A report by WisdomTree, an ETF and ETP provider, reveals the impact of the Federal Reserve's macroeconomic choices on the crypto sector. The report highlights a correlation between the trend of Bitcoin and the Fed funds rate. It suggests that when the Fed supports quantitative easing, speculative products perform well, while a policy of tightening easing weakens risk-on markets. The report also discusses the influence of low interest rates on the price of major cryptocurrencies in a bull market. It notes that the institutionalization of the crypto sector, particularly with the approval of spot crypto ETFs on Bitcoin and Ethereum, has attracted significant investments, resulting in the influx of $500 billion into the crypto market since January 2024. The report suggests that this trend will favor other cryptocurrencies like Solana and Ethereum.

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