Fed pause is a ‘green light’ for investors; here’s what it means for crypto
Dec 13. 2023
By Tom Mitchelhill
A decision from the United States Fed to pause and possibly lower interest rates next year will likely serve as a “positive boost” for cryptocurrencies and crypto stocks.
In a Dec. 13 interview with Bloomberg, Blackrock fund manager Jeffrey Rosenberg described the Fed’s rate pause — and its hint at rate cuts next year — as a “green light” for investors, with the S&P 500 rallying 1.37% on the decision.
“This bullish sentiment can go on for a while, at least until we get a new round of economic data, and until then the message is clear: the fed is more than willing to see an easing in financial conditions.”
Crypto stocks have witnessed significant gains on the back of the announcement too, with shares of Coinbase (COIN) and MicroStrategy (MSTR) respectively spiking 7.8% and 5% on the day, while Bitcoin miner Marathon Digital (MARA) jumped 12.6%.
Henrik Andersson, chief investment officer at investment fund Apollo Crypto told Cointelegraph that he expects today’s pause and the expectation of lowered interest rates in the coming year to be a “positive boost” for cryptocurrencies and crypto-related stocks, adding:
“If we see the likes of BlackRock and Fidelity launch Bitcoin ETFs we can expect a lot of other traditional financial institutions to enter the crypto markets as well."
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