WHAT IS FOMC❓& WHY EVERY CRYPTO TRADER SHOULD CARE❓❓
In the world of crypto, macroeconomic events can trigger major moves — and the FOMC (Federal Open Market Committee) is one of the biggest catalysts out there!
What is the FOMC?
It’s the decision-making wing of the U.S. Federal Reserve, made up of 12 powerful members. Their primary job? Setting interest rates and controlling the flow of money in the economy.
Why does it matter to crypto?
Because crypto doesn't exist in a vacuum — it reacts sharply to macro policy. When the FOMC raises interest rates, risk assets like Bitcoin and altcoins often dip as investors chase safer yields. When rates are cut, it can inject liquidity into markets, fueling bullish momentum across the crypto space.
FOMC Meetings = Market Volatility
The FOMC meets 8 times a year, and every word from these meetings — even in the official minutes — can shake up the markets. Crypto traders closely monitor these events because the reaction can be fast and explosive.
The USD Ripple Effect
Since the U.S. dollar (USD) is a global benchmark, FOMC policy shifts can strengthen or weaken it. This shift impacts crypto valuations directly, especially BTC/USD, ETH/USD, and even stablecoin dynamics.
Bottom Line:
If you're trading crypto, ignoring the FOMC is like sailing without checking the weather. Stay ahead of the curve — watch rate decisions, Fed commentary, and dollar reactions to make smarter entries.