📈The Fed's interest rate decision caused volatility in the U.S. stock market, but cryptocurrencies have an independent trend
1After the two-day monetary policy meeting, the Fed announced (January 29) that it would maintain interest rates at 4.25%-4.50%. The U.S. stock market fluctuated greatly, but Bitcoin "fell to $101,500 after the interest rate decision was announced; and Bitcoin quickly rebounded to more than $105,000 the next day, showing strong resistance to pressure.
Santiment's analysis pointed out that although the Fed's interest rate adjustment caused huge fluctuations in traditional financial markets, the cryptocurrency market was basically unaffected. In the past, interest rate changes (such as interest rate cuts in 2020 and interest rate hikes in 2022) had a particularly significant impact on investor sentiment, but with the maturity of the crypto industry, Bitcoin and the entire crypto market have become significantly less sensitive to interest rate changes.
Moreover, the analysis also pointed out that the strongest bull market in the history of cryptocurrencies actually occurred when the relationship with the global stock market was the weakest. Although cryptocurrencies and traditional stocks have been quite "close" in the past three years, this time the Fed's decision The lack of volatility in Bitcoin indicates that cryptocurrencies may be getting rid of the label of "high-leverage tech stocks" and becoming more independent.
In addition to the Fed's decision, changes in US politics have also had a great impact on the changes in Bitcoin. On January 20, local time, Trump was sworn in as the 47th President of the United States. He is a staunch supporter of Bitcoin, which has brought a new wave of confidence to the cryptocurrency market. His government also plans to make the United States a global leader in blockchain technology and even establish a national Bitcoin reserve!
According to analysts, the main reason for Bitcoin's rise since November 5 is Trump's election. Bitcoin hit a record high in November and January 20. However, in the past week, as everyone's excitement about Trump's presidency has passed, they have begun to seriously evaluate the actual impact of his pro-cryptocurrency policies, and Bitcoin has also experienced some pullbacks.
In short, Bitcoin did not react much to the Fed's interest rate decision this time, but Trump's policies are quite exciting.
💬Finally, do you think cryptocurrency is really decoupled from stocks? Leave your comments in the comment section!
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