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Coinbase: AI technology could reduce inflation and pave the way for interest rate cuts

Coinbase analysts say that the efficiencies provided by artificial intelligence technology could affect the cryptocurrency market in another rather roundabout way, namely by reducing inflationary pressures, which, combined with growing pressure from U.S. politicians, could support further sharp rate cuts by the Federal Reserve this year. When the rate cut begins, it will be a constructive catalyst for stocks and cryptocurrencies, as a rate cut could lead to capital outflows from money market funds that currently hold $6.40 trillion, and into other asset classes.