Impact wey Fed rate cut get on Crypto: Wetin risky assets go do and wetin happen for stablecoins revenue

Recent talks and actions by the Federal Reserve about cutting interest rates fit to drastically affect different financial markets, especially cryptocurrencies and stablecoins. Specifically, the central bank's decision to cut interest rates for the first time since March 2020 directly affects the revenue models of top stablecoins like Tether's USDt and Circle's USD Coin, among others. These stablecoins dey hold big portions of their reserves for US treasury bills, and dem dey heavily rely on interest income from these securities. Each 50-basis point rate cut fit lead to loss of about $625 million in interest income for these issuers. Projections dey suggest say if dem cut more rates before the end of 2024, e fit lead to annual revenue loss of up to $1.5 billion. This financial dynamic change fit pressure stablecoin issuers to change their profit strategies. Meanwhile, the rate cuts and their signals fit either support or weaken market confidence for risky assets like cryptocurrencies, depending on whether investors see the cuts as helping to sustain economic growth or as response to economic weakness. Crypto traders suppose watch policy signals and market reactions closely to navigate potential shifts.