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Question #324

How do expectations of a Federal Reserve rate cut affect Bitcoin’s price outlook?

Category: General
Rate cut expectations boost Bitcoin’s price outlook by encouraging risk asset inflows
Rate cut expectations invariably cause Bitcoin price collapse due to reduced liquidity
Rate cut expectations have no effect on Bitcoin price which moves independently

Why is this the correct answer?

This is correct because when traders expect lower interest rates, they often put money into higher-risk assets like Bitcoin, which supports its price.

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