If you are new to crypto, let's figure out why everyone is watching the Fed's interest rate (Federal Reserve System of the USA) and how it affects BTC.
📊 1️⃣ What happened?
The Fed kept the interest rate at 4.50%, neither raising nor lowering it. This is called a 'pause' in monetary policy.
📌 Why is this important?
🔹 The Fed's interest rate affects the US economy and, accordingly, all financial markets, including crypto.
🔹 When rates are raised, loans become more expensive, money 'appreciates', investors exit risky assets, BTC falls.
🔹 When rates are lowered, loans become more affordable, more liquidity flows into the economy, investors move into risky assets, BTC rises.
🔥 2️⃣ Key points from the Fed's statement
✅ The US economy is growing — this is a good signal, but not for BTC. A strong economy = the Fed is in no hurry to lower rates.
✅ Unemployment remains low — meaning the labor market is stable, the Fed sees no reason for aggressive measures.
✅ Inflation is still high — this is bad for the markets because it is too early to lower rates.
💡 What has changed?
📉 The Fed is slowing down the balance sheet reduction (previously $25B per month → now $5B). This means that the Fed is easing its policy, which is potentially good for BTC in the long term.
📈 3️⃣ How does this affect Bitcoin?
💰 Rate forecast:
🔹 A decrease of 0.5% is expected in 2025, and another 0.5% in 2026.
🔹 The faster and more the Fed lowers the rate, the more liquidity will flow into the crypto market.
💡 What to do?
✅ BTC may be under pressure in the coming months if the Fed is not in a hurry to lower rates.
✅ But if inflation continues to fall, the Fed may act faster, and then BTC will receive a powerful upward impulse.
✅ We are watching the Fed's next decisions – as soon as they give a clear signal to lower rates, crypto will soar! 🚀
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