How can it affect cryptocurrency markets?
Meetings of the Federal Open Market Committee are among the most watched economic events worldwide. Their decisions regarding interest rates and monetary policy directly impact global financial markets - and yes, that includes cryptocurrency.
When the Federal Reserve raises interest rates, investors typically move away from risky assets like cryptocurrencies to safer options. This can cause a decline in Bitcoin and altcoins. On the other hand, if the Federal Reserve pauses or lowers interest rates, it may inject new upward momentum into the market.
Many traders monitor the outcomes of the Federal Open Market Committee to position themselves early. Volatility often rises before and after announcements, creating both risks and opportunities.
For cryptocurrency traders, understanding macro events like the Federal Open Market Committee can provide an advantage that goes beyond charts and indicators.
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