#PowellRemarks
The decision of the American Federal Reserve regarding interest rates is one of the most prominent factors that directly affect the cryptocurrency market. When the Fed keeps interest rates high, it diminishes the appeal of high-risk assets like cryptocurrencies, as returns on bonds and traditional instruments become safer and more profitable for investors. Conversely, when the Fed moves to lower interest rates, liquidity in the markets increases, and investors begin to seek higher return opportunities, which boosts demand for cryptocurrencies like Bitcoin and Ethereum.
The impact is not limited to the decision alone; it also includes the Fed's future statements, as expectations of interest rate cuts or monetary easing create a rapid psychological effect in the market. Investors react strongly to these signals, leading to sharp fluctuations or upward waves. Thus, the Fed's policies not only affect the dollar or stocks but have now become fundamental drivers of the global cryptocurrency market trend.
