The UN Calls for Central Banks to Cut Interest Rates
The United Nations has expressed significant concern about the high interest rates and urged central banks to halt their rate hikes. According to the UN, further rate increases could result in a financial crisis even worse than that of 2008. With the ongoing war in Ukraine and rising food and energy costs, the UN predicts that a third of the world may soon enter a recession.
Ji bo vê yekê, the Federal Reserve is likely to implement expansionary monetary policies in the coming months. This would involve lowering interest rates to stimulate economic growth, which could also lead to a renewed crypto bull market.
The Job Market and Federal Reserve Interest Rates
One factor that could prevent the Federal Reserve from lowering interest rates is the state of the US job market. The Fed would need to see a reduction in jobs before halting interest rate hikes. Its goal is to balance the labor market, and based on recent reports, the Federal Reserve may not stop increasing interest rates until March 2023.
Rising Cryptocurrency Adoption Rates
While the actions of the Federal Reserve could play a pivotal role in crypto prices, there are other factors contributing to a potential crypto bull run. One of these factors is the increasing adoption of cryptocurrencies in the Fintech sector. For example, PayPal now supports the deposit and withdrawal of cryptocurrencies in personal wallets, and Robinhood plans to launch a non-custodial wallet by the end of 2022, with the beta version currently being tested.
Low Fees and Quick Transactions Boost Crypto Use
As transaction fees and transfer times improve, more people and businesses are likely to adopt crypto payments. Cryptocurrencies like Solana and Cardano offer instant transaction settlement, in contrast to the longer verification times with Visa and Mastercard. These cryptocurrencies also feature minimal transfer fees, making them attractive for both consumers and businesses.
Waning Trust in Banks Drives Crypto Adoption
Another factor driving crypto adoption is the growing distrust in traditional financial institutions. Recent events have highlighted the unreliability of banks and other companies. For instance, PayPal recently updated its user policy to fine customers $25,000 for spreading misinformation online. Cryptocurrencies cannot enforce such rules due to their decentralized nature, and this is one reason people are increasingly turning away from centralized banking systems, which often lead to financial crises.
Nîvekirina Bitcoin 2024
The next Bitcoin halving event is set to take place in early 2024. The first halving in 2012 resulted in a price increase of more than 7000%, and the 2016 halving saw a 2800% rise in price. The 2020 halving led to a 600% increase in price. The halving reduces the supply of Bitcoin, and since demand typically remains constant, the price of Bitcoin tends to rise as a result.
