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📊 FED & MACRO POLICY: Why It Matters to Crypto
When the U.S. Federal Reserve speaks—crypto listens.
Yes, even Bitcoin dances to the tune of interest rates.
Here’s why:
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🏦 1. Interest Rates vs Bitcoin
⬆️ When the Fed raises rates, borrowing becomes expensive, risk assets (like crypto) take a hit.
⬇️ When rates drop or pause, liquidity returns—and BTC pumps.
🧠 Think of it like crypto's oxygen: More money = more market fire.
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📉 2. Inflation: The Silent Catalyst
The Consumer Price Index (CPI) is a key metric.
Lower inflation = Fed could cut rates sooner.
Higher inflation = More hawkish Fed, less liquidity.
📅 CPI & Fed meeting dates? Set your calendar alerts. Traders do.
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🪙 3. The “Digital Gold” Debate
In uncertain economic times, Bitcoin behaves like gold.
When trust in fiat falls, BTC’s limited supply becomes a strength.
🪙 This is why macro investors now treat Bitcoin as a hedge asset.
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🚀 TL;DR:
> The Fed isn’t just about dollars. It sets the mood for the entire crypto market.
🔍 If you're trading crypto and ignoring interest rates—you’re not trading, you're guessing.
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🔁 Follow for more alpha.
Next up: #ETFImpact101 – How institutional money is flowing into crypto
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