What is the FOMC and why should you care?
This Wednesday, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve will decide whether to raise, lower, or maintain interest rates.
And yes, even though it sounds distant from the decentralized world, cryptocurrencies tremble every time Powell speaks.
Why does it matter for crypto?
High rates = less liquidity = bearish pressure.
Stable or declining rates = more risk = more interest in assets like BTC and ETH.
The narrative of 'crypto as a refuge' is tested every time the FED acts.
Possible scenarios:
1. No change: Bitcoin could trade sideways or rise moderately.
2. Rate cut (surprise): Bullish explosion.
3. Unexpected rate hike: Rapid decline of the crypto and traditional markets.
Bonus: the digital dollar in focus.
Monetary policy will be key for plans of a future CBDC.
Prepare for more control… or more adoption of DeFi.
Final reflection: Decentralization is not exempt from the influence of the system.
But the more chaos there is in the traditional system, the stronger the case for crypto becomes.
