#FOMCMeeting

1. What is the FOMC meeting?

It is a meeting held by the US Federal Reserve to determine monetary interest rate policy.

They decide whether to raise, lower, or maintain interest rates.

In addition, they discuss easing or tightening monetary policy, such as reducing asset purchases or withdrawing liquidity from the markets.

2. How does it affect the markets?

Raising interest rates: Usually negative for risk assets (like crypto and stocks) because it increases the cost of financing and reduces liquidity.

Lowering interest rates: Positive, injects liquidity and encourages investment in risky assets.

Statements: Sometimes the impact comes not from the decision but from the tone of the speech (Hawkish = tightening, Dovish = easing).

3. The direct relationship with crypto (BTC and ETH):

Crypto is very sensitive to liquidity.

The more the Federal Reserve is accommodating and injects liquidity, the higher the prices of Bitcoin and Ethereum rise (as happened after the banking crisis in March 2023).

And if it is tightening and withdrawing liquidity (as in 2022), crypto faces a strong decline.

4. The current point in 2025:

Markets are now waiting to see if the Federal Reserve will enter a phase of lowering interest rates to combat slowing growth?

Or will it remain committed to high interest rates to control inflation?

Any signal from the Federal Reserve will trigger a strong movement in the markets, especially in cryptocurrencies, which are considered the most sensitive to these policies.