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Giấy phép số 4978/GP-TTĐT do Sở Thông tin và Truyền thông Hà Nội cấp ngày 14 tháng 10 năm 2019 / Giấy phép SĐ, BS GP ICP số 2107/GP-TTĐT do Sở TTTT Hà Nội cấp ngày 13/7/2022.
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Key Points - Rising interest rates will drive investors away from cryptocurrencies. - Declining interest rates will bring them back. Many cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), are highly sensitive to interest rate swings. Let's see why higher interest rates are generally bad for cryptocurrencies, and why they tend to rally when the Fed reduces those benchmark rates. How are cryptocurrencies affected by interest rates? When interest rates are low, it's easier for individuals and companies to take out cheap loans. Yields on fixed-income plays -- such as CDs, T-bills, and bonds -- also decline. Those factors often drive investors toward riskier investments, such as growth stocks and cryptocurrencies. But when interest rates rise, those investors rotate back toward safer investments. In 2022 and 2023, the Fed raised its rates 11 consecutive times -- from nearly zero to 5.25%-5.50% -- to combat inflation. Those rate hikes triggered a crypto winter, sending Bitcoin from about 48,000 to 16,000 and Ether from 3,900 to 900. Yet in 2024 to 2025, the Fed cut its rates six consecutive times, bringing them to their current range of 3.5%-3.75%. As that pressure eased, Bitcoin and Ether — the blue chip cryptocurrencies — bounced back. But many of the smaller altcoins remained out of favor. The lack of additional interest rate cuts in 2026 — along with fears that inflation might trigger new rate hikes — is chilling the crypto market. So if you're interested in buying cryptocurrencies today, you need to keep a close eye on the Fed's interest rate decisions.

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