Goldman Sachs forecasts the U.S. Federal Reserve may cut interest rates twice by the end of 2024, earlier than initially predicted due to cooling inflation.
The first rate cut could happen as early as the third quarter of 2024, potentially lowering the interest rate to around 4.875%.
Strong U.S. labor market performance, indicated by a decrease in unemployment rate to 3.7% in November, supports the likelihood of these rate cuts.
Reduction in Fed interest rates typically encourages risk-taking in financial markets, including cryptocurrencies, by making borrowing cheaper.