Clear Street Managing Director Owen Lau stated that the Federal Reserve's (The Fed) rate cuts could encourage retail investors to return to the crypto market.
"But on the other hand, if interest rates go down, it usually means the market is in risk mode. So retail will be more enthusiastic about entering crypto, and institutions will also be more enthusiastic about entering crypto," he said, citing YouTube CNBC Television.
On the other hand, during the year 2025 The Fed has cut interest rates three times. However, the crypto market did not respond well to this news and tended to stagnate and then decline.
This happened because the interest rate cut did not meet the expectations of crypto market participants who were expecting a cut of up to 1% in the interest rate.
As information, the Chairman of The Fed Jerome Powell has cut the interest rate, among others by 25 bps in September, October, and December, which is now 3.50%-3.75%.
