Bitcoin has gained in recent days after Fed chair Jerome Powell confirmed that it is now time to start cutting interest rates.
Such an adjustment to the monetary policy tends to be a tailwind for cryptocurrencies as lower interest rates make risk-on assets more attractive for investors.
Other meme coins, particularly Bitcoin Dogs could also benefit from rate cuts as it’s the world’s first ICO on the bitcoin blockchain and, therefore, will likely follow the world’s largest cryptocurrency in its footsteps.
Bitcoin Dogs had a successful presale
Lower interest rates are beneficial for risk-on assets like Bitcoin Dogs ($0DOG) as they make bonds and conventional saving accounts less attractive.
Investors, therefore, tend to seek higher returns in alternative assets like cryptocurrencies in a lower-rate environment.
Additionally, the Federal Reserve typically turns to cutting rates to stimulate economic growth, which can lead to increased investment activity, including in digital assets like Bitcoin Dogs.
$0DOG has recently ended its presale, raising more than $13 million.
The demand for the meme coin was strong even amidst higher rates – and can be expected to receive a further boost once the US central bank begins cutting rates in September.
You can learn more about Bitcoin Dogs to decide if it’s a suitable investment for you on this link.
Weaker USD is a benefit for $0DOG
Rate cuts could be a boon for the likes of $0DOG for two more reasons: a weaker dollar and increased liquidity.
Since cryptocurrencies are usually priced in USD, a weaker dollar due to lower interest rates tends to make them appear more valuable.
Plus, rate cuts result in more money circulating in the economy, some of which can find their way into cryptocurrencies like Bitcoin Dogs.
Note that $0DOG is much more accessible for global investors now that it has been listed on prominent crypto exchanges like Gate, MEXC, Uniswap, DEXTools and Unisat.
That may be another reason to build a position in Bitcoin Dogs as greater access typically means more demand and higher demand tends to result in price appreciation.
Click here to explore the $0DOG meme coin further.
Bitcoin Dogs to launch a staking platform
In his recent speech, Chair Powell also signalled confidence in the central bank’s ability to bring inflation back to the 2.0% target while maintaining a strong enough labour market as well.
That could be a benefit for Bitcoin Dogs as higher employment leads to increased disposable income, which boosts investment activity, potentially also in cryptocurrencies.
Other reasons to invest in $0DOG include the prospect of passive income from the staking platform that the team plans on introducing in the coming months.
Finally, you get to spend Bitcoin Dogs in the platform’s native dogaverse to have fun and earn rewards.
If you’d like to know more about how to invest in Bitcoin Dogs ($0DOG), click here now.
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