Day 13: Fed Cuts Rates + What It Means for Crypto

Today we’re shaking things up a little. This series is meant to walk through crypto step by step, but since X is flooded with posts about the latest rate cut, I thought, why not join the conversation? Consider this a special edition of our 100 Days of Crypto. Still part of the journey, just with a timely twist.

And because I’m a mom, let’s talk about it the way moms understand best: the grocery budget.

Mom’s Analogy: The Grocery Run

Every week, we juggle the grocery list with whatever budget we have. When prices are high (inflation), our ₱1,000 doesn’t stretch as far. We cut back, skip the snacks, and focus on the essentials.

Now imagine one day the store announces a sale — veggies are cheaper, milk is discounted. Suddenly, that same ₱1,000 feels lighter. We can add fruit, maybe even treat the kids.

That’s kind of what the U.S. Federal Reserve did today by cutting interest rates by 0.25%. It’s like lowering the cost of borrowing money, giving households and businesses a bit more breathing room.

What This Means for Crypto

So why does this matter for us in crypto?

1. Risk assets like Bitcoin get a lift. Lower rates mean investors feel braver about putting money into “riskier” things. For some, that extra budget goes into Bitcoin or altcoins instead of sitting in savings.
2. Stablecoin yields might shrink. Back in Day 1, we talked about stablecoins as the “steady merry-go-round” of crypto. Some people park money there for yield. When rates go down, those earnings usually drop too.
3. Short-term excitement, long-term caution. Remember my NFT story in Day 22? Prices spiked, then crashed. Rate cuts can cause the same kind of excitement in crypto — but they don’t guarantee lasting growth.

Takeaway

For me, it’s simple: when the “big boss” of the economy adjust the budget, it ripples down to everyone, from big investors to us buying rice at the palengke. Crypto feels the waves quickly, but just like at home, discipline and priorities matter most.

Final Bite: This rate cut is like finding a sale in the grocery, it helps for now, but it doesn’t erase the bigger challenges. In crypto, it may spark more energy, but risk never disappears.

👀 Next post, we’ll slide back into our planned topics. After all, this is only Day 13 out of 100, and we still have a long way down the rabbit hole. See you tomorrow!