Copom cuts Selic to 13.75% per year and investors assess impact on crypto market

Copom cuts Selic to 13.75% per year this Wednesday (16), signaling a shift in Brazilian monetary policy. The 0.25 percentage point cut in the benchmark interest rate, which had been at 14.00% since August, could change the investment landscape, including the cryptocurrency market.

Falling Selic: what does it mean for investors?

The Selic, the main reference for credit costs in the country, directly influences capital allocation decisions. With the reduction to 13.75% per year, the profitability of fixed income assets tends to fall, encouraging investors to seek higher-risk, higher-return alternatives – such as cryptocurrencies.

Historically, periods of high interest rates in Brazil strengthen traditional investments like CDBs and government bonds, reducing appetite for volatile assets. Now, with the start of a rate-cutting cycle, the crypto sector may gain more space in Brazilians’ portfolios, especially among those seeking diversification and currency protection.

Outlook for bitcoin and altcoins after the Selic cut

The crypto asset market in Brazil had already been seeing increased interest since early 2026, driven by the search for alternatives to the real and inflation. Bitcoin (BTC), for example, maintained gains above inflation over the past year, and altcoins like Ethereum (ETH) and Solana (SOL) also attracted significant investments.

The Selic reduction could boost this trend. With lower guaranteed returns in fixed income, investors tend to take on more risk in search of gains. In addition, greater liquidity in the financial system can benefit digital assets, which show higher volatility and appreciation potential during interest rate cutting cycles.

Impact on exchanges and the DeFi ecosystem

Brazilian crypto exchanges such as Mercado Bitcoin, Binance, and NovaDAX may see increased trading volumes as the Selic drops. Interest in stablecoins and DeFi solutions, which offer returns in dollars or through decentralized protocols, is also expected to grow among investors keeping an eye on the macroeconomic scenario.

Moreover, the Selic cut could spur innovation in crypto-linked financial products, such as funds, ETFs, and staking platforms, expanding options for those looking to diversify outside traditional fixed income.

What to watch next

The market will closely monitor Copom’s next moves and the Central Bank’s signals on the pace of future cuts. Sharp moves in the Selic can generate exchange rate volatility, affecting the price of bitcoin and other cryptos against the real. Investors should keep an eye on both the domestic scenario and global trends, such as US monetary policy and the performance of major crypto assets.

Want to trade crypto with AI support? Check out Zayion AI, Bianchi Capital’s trading assistant.

With information from BeInCrypto Brazil.

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Alexandre Bianchi

Fundador da Bianchi Capital e do Zayion AI. ~10 anos no mercado de ativos digitais, autor de referência e presença na mídia.

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