Does the Fed Interest Rate Have Any Effect on Crypto Gambling?
In September, the Federal Reserve (Fed) announced a 0.5% cut in interest rates, or 50 basis points. The Federal Open Market Committee decided this as a result of the weakening labor market and moderate inflation signs.
But the Fed didn’t stop there, as they lowered the rates by an additional 0.25%, or 25 basis points, this November. This cut got the current interest rate to 4.5%, which increased investors’ attraction towards cryptocurrencies. Such market changes even affected the crypto sports betting and casino gambling industry.
What Does the Fed Interest Rate Cut Mean for Cryptocurrencies?
The crypto market experienced a surge almost immediately after the Fed announced the interest rate cut. Bitcoin, the first and most popular cryptocurrency, reached a trading price of around $62,000 on September 19th. Just as a comparison, the BTC value on September 7th was around $54,000.
At the moment, Bitcoin sits at a market value of $89,600. But, on November 13th, it reached its highest price in its existence after reaching a staggering $93,233.
This increase in prices reflected the renewed investor interest following the Federal Reserve’s decision. However, we must also note that Bitcoin traditionally performs well during low-interest-rate conditions.
Other cryptocurrencies such as Ethereum, Dogecoin, XRP, Cardano, Solana, and more also saw a surge in prices. However, these value increases mostly occurred during the second Fed rate cut in November.
The lower interest rate might signal a return of liquidity, as well as fueling a sharp rally and stimulating a risk-on sentiment. However, the positive impact of the featured cut wasn’t limited only to Bitcoin.
Coinbase, Marathon Digital, Riot Platforms, CleanSpark, and MicroStrategy all saw an increase in their shares. We are yet to see how the crypto market surge influenced the income of popular BTC casinos such as CryptoRush.
How Are the Lower Fed Interest Rates Affecting Crypto Gambling?
Crypto investors and companies that rely on cryptocurrency trading aren’t the only ones affected by the lower interest rates. Online gambling fans that use these assets for casino gaming or sports betting also felt the drastic market changes.
Players that had assets in one of the affected cryptocurrencies made a serious profit. Especially those that featured at least a few BTC coins on their crypto wallets or casino accounts.
Here, we don’t mean about winnings that come from gambling on casino games. The profits we mention are those that occur due to the increased values of certain cryptocurrencies.
For instance, let’s say a player purchased 0.01 BTC for $540 on September 7th. If they decide to sell their asset today at a price of $896, then they’ll make a profit of $356. All of this without even gambling a single dollar on casino games or sports events.
However, Bitcoin gamblers who don’t have any assets are in a hazardous situation at the moment. This is so because they need to spend 60% more than they would’ve two months ago.
These players, however, can easily switch to some other cryptocurrencies that are still unaffected by the Fed’s interest rate cut. Or they might purchase coins that feature very low prices.
What Should Crypto Gamblers Do?
If you’re a crypto gambler who holds assets in Bitcoin or any other positively affected coin, then you might consider selling. This goes especially for those players that purchased assets before the prices started going upwards.
You can even sell just a portion of your crypto coins and hold on to some of them. We suggest selling an amount that will get back the investment you made in purchasing the asset in the first place.
Those who gamble at Ethereum sportsbook should strongly consider selling. The ETH value reached a peak of $3,420 since the rate cut, but now it has experienced a decreasing trend.
On the other hand, players who don’t have crypto assets should make smart decisions when purchasing. If you’re such a gambler, then you should stay away from expensive cryptocurrencies such as Bitcoin. Luckily for you, you’ll find plenty of other tokens to choose from.
Some of them experienced only a slight increase in value, while others remained at almost the same price level. But, before you buy crypto assets, make sure to check which coins are available at your online casino.
For instance, at Cryptorush casino, you can gamble using TRX, LTC, or USDT apart from BTC and ETH. We suggest buying and using Tron coins as they are pretty cheap at the moment. But if you like to make a somewhat larger investment, then you should consider purchasing Litecoin assets.
