$CTK The FOMC meeting has a significant impact on the crypto market, mainly due to its influence on investor sentiment, liquidity, and risk appetite. Here’s how:

1. Interest Rate Decisions & Crypto Prices

• Rate Hikes (Tightening Policy) → Bearish for Crypto

• Higher interest rates make traditional investments like bonds and savings accounts more attractive.

• Liquidity dries up as borrowing becomes expensive, reducing risk-taking in volatile assets like crypto.

• Bitcoin (BTC) and Ethereum (ETH) often experience sell-offs.

• Rate Cuts (Easing Policy) → Bullish for Crypto

• Lower interest rates push investors toward riskier assets with higher potential returns.

• More liquidity flows into crypto, often leading to price rallies.

• Bitcoin and altcoins tend to gain momentum.

2. Inflation & Fed’s Stance

• If the Fed signals strong inflation concerns, it may continue tightening, hurting crypto prices.

• If inflation appears under control, the Fed may adopt a dovish (relaxed) stance, boosting crypto markets.

3. Market Sentiment & Volatility

• Before FOMC meetings, crypto markets often experience uncertainty and volatility.

• After the meeting, clear guidance from the Fed can lead to sharp price swings in either direction.

4. Institutional & Retail Investor Behavior

• Institutional investors consider the Fed’s stance before making large crypto investments.

• Retail investors react emotionally, sometimes leading to panic selling or FOMO buying after an #FOMC decision.