Binance CEO Richard Teng: Expectations of rate cuts will have a significant impact on crypto asset prices

According to Foresight News , Binance CEO Richard Teng commented on the expectation of interest rate cuts, saying, "We expect that the expectation of interest rate cuts will have a considerable impact on the price of crypto assets. Lower interest rates increase the liquidity of the financial system, thereby boosting the demand for high-yield, high-risk assets, including cryptocurrencies. For example, between February 2020 and February 2022, when interest rates were close to zero, the price of Bitcoin rose by 375%. In addition, lower interest rates may trigger concerns about inflation, prompting some investors to turn to cryptocurrencies to protect their purchasing power; low interest rates will also weaken the US dollar, making more investors likely to view crypto assets as another means of storing value. Bitcoin and other crypto assets have unique features that may affect their prospects during interest rate cuts. One of the key factors to consider is the recent Bitcoin halving, which has generally seen price increases 6-18 months after similar events in history. The launch of spot ETFs can also facilitate easier conversions between stocks and cryptocurrencies, allowing the liquidity growth brought about by interest rate cuts to flow into the cryptocurrency market. In addition, while September is typically a weak month for crypto assets, prices typically rise from October to December. “The Fed’s rate cuts have been on the rise since September, and expectations of rate cuts may provide additional momentum as prices rebound. The impact of the Fed’s rate cuts on the cryptoasset market is uncertain, but multiple indicators suggest that the September policy changes may come at an opportune time for crypto investors. Lower borrowing costs and increased liquidity offer a promising outlook for cryptoassets. Historical trends and unique cryptocurrency-specific variables further reinforce optimism that these policy changes could boost growth.”