#CryptoStocks
The U.S. Federal Reserve's decision on interest rates has a significant impact on the cryptocurrency market. When the Fed keeps rates high, investing in risky assets like cryptocurrencies becomes less attractive, as returns on traditional assets become more stable.
However, when rates are lowered, liquidity increases in the markets, and investors look for higher profit opportunities, driving them towards cryptocurrencies. Additionally, future hints from the Fed play an important psychological role; merely signaling a potential rate cut leads to increases in the prices of Bitcoin and Ethereum.
Therefore, every statement from the Fed Chair or official announcement acts as a sensitive indicator, which the crypto market reacts to quickly. Expectations of monetary policy easing enhance risk appetite and push digital markets higher.
