What is the impact of maintaining the federal interest rate on cryptocurrencies?
The U.S. Federal Reserve has decided to keep interest rates unchanged, a decision that is expected to affect the cryptocurrency market in several ways. In the short term, this decision may reduce sharp volatility, but it keeps pressure on liquidity due to the high cost of borrowing.
If the decision is accompanied by signals of a potential cut later, it may support investor confidence and boost demand for cryptocurrencies. However, if the Fed continues its tightening policy, it may drive investors toward safe havens, weakening the performance of Bitcoin and other digital assets.
Historically, low interest rates have been associated with strong speculative trades in cryptocurrencies, while high interest rates have led to sharp declines. Therefore, market expectations remain tied to the Fed's future trends and the strength of the U.S. economy.
