Coinbase Analyst: AI-driven Efficiency Improvements Could Reduce Inflation, Paving the Way for More Aggressive Rate Cuts

BlockBeats news, June 14, according to The Block, Coinbase research analysts David Duong and David Han expect AI and technology-driven efficiency improvements to affect the cryptocurrency market in another rather roundabout way-by curbing inflation. This reduction is likely to keep interest rates low and increase appetite for risky assets such as cryptocurrencies.

"We believe that the anti-inflationary impact of AI and technology-driven efficiency improvements will continue to drive a moderation in inflation trends this year," analysts said in a report on Friday.

Friday's Coinbase market report added that these AI-driven efficiency improvements, coupled with increasing pressure for monetary easing in the United States, could support earlier and more aggressive interest rate cuts than the Federal Reserve currently suggests.