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