Analyst: The Federal Reserve’s reduction in interest rate cuts in 2025 will not hinder the rise of alternative assets such as cryptocurrencies

PANews, December 28: According to Reuters, the Federal Reserve cut interest rates for the third time this year this month and hinted at fewer rate cuts in 2025 due to an uncertain inflation outlook, fueling expectations that interest rate cuts will boost company profits and valuations. Investors were disappointed, causing the stock market to plummet. However, this may not hinder the rise of alternative assets such as cryptocurrencies. Damon Polistina, director of research at investment platform Eaglebrook Advisors, said the incoming pro-crypto Trump administration is adding to a number of catalysts that are boosting cryptocurrency investor confidence. This month, Bitcoin prices surged above $107,000, driven by Trump's friendlier policies. Damon Polistina added, “Cryptocurrencies are widely viewed as a risk asset. Therefore, the Fed cutting interest rates is positive... Any positive economic data in early January next year will help maintain the momentum we are seeing.”