Bitcoin’s price is influenced by the Federal Reserve’s federal funds rate, with low rates historically boosting cryptocurrency prices. The Fed is expected to cut rates again, potentially benefiting Bitcoin. Lower rates make cash less attractive, pushing investors towards riskier assets like Bitcoin. In 2020, when the Fed cut rates due to the pandemic, Bitcoin’s price surged by 443%. With rates currently in the 3.75% to 4% range, more rate cuts may be on the way, impacting Bitcoin’s performance. However, rate cuts are not a guaranteed green light for Bitcoin investments, as economic conditions play a significant role.

Read more at Nasdaq: Why Bitcoin Could Outperform If the Federal Funds Rate Changes