If the Federal Reserve keeps interest rates high or hints at not lowering them soon, it exerts negative pressure on cryptocurrencies because high interest rates mean increased bond yields, leading investors to prefer safe assets. Reduced market liquidity weakens demand for risky assets like crypto. A stronger dollar causes other currencies, including digital currencies, to decline. The expected outcome is a drop in the crypto market or continued negative volatility. However, if the Federal Reserve indicates an intention to lower interest rates soon, this is very positive news for cryptocurrencies. Lowering interest rates increases market liquidity. Investors shift towards higher-yielding and riskier assets like crypto. A weaker dollar supports the prices of Bitcoin and others. The expected outcome is a rise in cryptocurrencies, especially if accompanied by technical momentum or positive news in the sector.