Since 2023, the U.S. Federal Reserve has kept the rate at 5.25–5.50% — the highest in two decades. How is cryptocurrency responding to this?
The dynamics have been analyzed and presented in the chart 👇
🔍 Key findings:
✅ The period of tight monetary policy (Q2–Q4 2023) is accompanied by stagnation and correction in the BTC and ETH markets.
✅ Since the beginning of 2024, despite the stable rate, the crypto market has started to recover.
✅ BTC has risen by 63%, ETH — by 55%, while the Fed's rate remained unchanged.
This means: the recovery of the crypto market is not due to a rate cut, but on expectations of policy easing. Market psychology — anticipates the Fed's actions.
📈 What's next?
If at the September 2025 meeting the Fed signals a rate cut:
· 📌 Investors can expect a new phase of growth for digital assets;
· 🛡️ But as long as the rate remains high — volatility and pullbacks are not excluded.
💡 Conclusion:
The crypto market lives on expectations, not facts. But when expectations become reality — movement begins. Keep an eye not only on the rate but also on FOMC forecasts and the U.S. labor market.
#Fed #BTC #ETH #BinanceSquare #inflation #cryptomarket #FedRate #investors #macroeconomics #FOMCMeeting