Analyst: The Fed's rate cuts in 2026 will become the "key catalyst" for retail investors to return to the crypto market

Golden Finance reports that a crypto analyst stated that the extent of the Federal Reserve's rate cuts in 2026 will determine whether retail investors will re-enter the crypto market next year. However, after the Fed has already cut rates three times in 2025, there are still doubts in the market about whether it will continue to do so. Owen Lau, Managing Director of Clear Street, said in an interview with CNBC on Tuesday that the Fed's interest rate decisions will be "one of the most critical catalysts for the crypto market in 2026." Lau stated, "Retail investors will be more interested in entering the crypto market, and institutional investors will also be more willing to participate." Generally speaking, rate cuts are positive for crypto assets because when traditional investments like bonds and fixed deposits become less attractive, investors tend to shift to higher-risk, potentially higher-return assets like Bitcoin to seek better returns.