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The impact of interest rate cuts and volatility on the crypto market

On December 18, 2024, the Federal Reserve lowered interest rates for the third time that year by 0.25 percentage points, bringing the policy rate to a range of 4.25% to 4.5%. These reductions were intended to stimulate the economy amid declining inflation and rising unemployment. Historically, lower interest rates lead to increased investments in riskier assets, such as cryptocurrencies. This happens because borrowing becomes cheaper, and traditional investments yield lower returns, prompting investors to seek alternatives with higher potential gains.

In response to these interest rate cuts, Bitcoin reached a record high of $106,496 earlier this year. This increase was partly driven by expectations of further rate cuts and the prospect of a possible pro-crypto policy under President Trump. However, such rapid price surges are often accompanied by increased volatility, creating uncertainty for investors exposed to price fluctuations.

Announcement of a national crypto reserve

On March 2, 2025, President Trump announced the establishment of a national crypto reserve, including cryptocurrencies such as Bitcoin, Ethereum, Ripple, Solana, and Cardano. This announcement led to immediate price increases. For example, Bitcoin surged by $10,000 within hours, and some altcoins saw gains of over 40%.

Although this news initially caused excitement, market corrections followed quickly. The market remains sensitive to policy changes and macroeconomic developments, such as trade wars and shifts in the dollar’s value. These factors contribute to ongoing volatility in the crypto market, which can be challenging for traditional investors.

How to profit from this volatility with Yieldfund

Unlike traditional investors, Yieldfund does not see volatility as a threat but as an opportunity. Yieldfund employs advanced trading strategies designed to generate profits in both rising and falling markets.

This approach allows Yieldfund to achieve consistent returns, even in times of high volatility. While traditional investors may experience losses during market corrections, Yieldfund can capitalize on the same market movements through strategically positioned trades.

Risk management and transparency

Yieldfund minimizes risk by investing in the top 100 cryptocurrencies. By trading in both rising and falling markets, Yieldfund reduces exposure to extreme volatility and unexpected market fluctuations. Additionally, Yieldfund prioritizes transparency by providing weekly updates on the platform’s performance.

Conclusion

The current economic environment, marked by interest rate cuts and policy changes such as the introduction of a national crypto reserve, has led to increased volatility in the crypto market. While this volatility may be unfavorable for many investors, it presents opportunities for Yieldfund to generate profits. By utilizing advanced trading strategies and maintaining a strong focus on risk management, Yieldfund is well-positioned to benefit from both upward and downward market trends, offering an attractive opportunity for investors seeking returns in a dynamic market.

Invest today with Yieldfund

Ready to turn your high-return dreams into reality? Invest in Yieldfund today. After a one-time investment, we take care of the rest, and you will see your capital grow!

Disclaimer: The content of this article do not constitute financial or investment advice.

Yieldfund's last trades

XLM/USDC
Short
5.18%*

Entry price
0.2642

Exit price
0.2627

Date
March 16, 2025

AVAX/USDC
Short
5.25%*

Entry price
18.3980

Exit price
18.2940

Date
March 16, 2025

SOL/USDC
Short
5.17%*

Entry price
129.5000

Exit price
128.7700

Date
March 16, 2025

*The trade percentages are the net percentages. The trade costs have already been deducted.

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