The whole world is going serious trouble regarding inflation and to control banks and other finance organizations are trying to face these challenges and solve the inflation rise. This is only possible to control the money supply and the interest rates.

The whole world huge departments are trying to cover this inflation with the help of interest rates. Just like in my county Pakistan the current interest rate is above 20% APR that banks are offering right now. They believe that rising interest rate will bring more investor to invest in the Pakistani currency to control inflation.

Similarly, Central banks are trying to increase the interest rate on monthly basis so that to attract the investors towards money saving in banks. Recently we will have FED announcement late in December which will decide the direction for Crypto.

We know that the world has gone advance and investors now try to take work from their money rather putting physically effort. They think if they can earn good income from the money why we need to work.

WHAT IS THE IMPACT OF INTEREST RATE ON BITCOIN

There is surely a huge impact of interest rate on Bitcoin and other cryptocurrency. Lower interest rate will benefit Bitcoin and higher interest rate will drop the price of the Bitcoin. this is known that Crypto market is high volatile despite we have best interest rate offers even more than 20%.

There are the coins which offers you a handsome amount of interest but why investors still dont trust them. one of the reason that this is virtual currency and has no backup. Just like luna which collapsed badly and take Billions of dollars of money from people.

In this case no one is responsible and no one will take the responsibility of it. That is the main reason investors won't trust crypto interests however they are offering huge APR. In other words there is no guarantee of cash protection which decrease the confidence of the investors.

Lower interest rate will surely benefit bitcoin which central banks dont want to be happen. They dont like bitcoin and they are continuously trying to lower the value of Bitcoin. But undoubtedly, Cryptocurrency is spreading all over the world and getting more popularity.

The next FED announcement is in next few days and is most likely to lower the interest rate. They can't keep on rise interests because it will reduce economic growth, increase cost of government, decrease asset price and many other. Which they can't afford all of them.

On the other hand, Bitcoin price will rise if they lower the interest rate. which will be another challenging situation for them. To summarize the post lower interest rate will benefit bitcoin and which is in favor of crypto users.

What do you people think in future will interest rate will impact Bitcoin? Do you think investors will trust crypto and will invest their amount in different coins? Will be glad to see your answer in the comment below.

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