FedWatch in Crypto: Why It Matters
FedWatch refers to monitoring the U.S. Federal Reserve's monetary policies, such as interest rate changes, and their impact on financial markets, including cryptocurrencies. When the Fed raises rates, risk assets like Bitcoin often decline due to tighter liquidity. Conversely, rate cuts can fuel bullish sentiment as investors seek higher returns in crypto. Traders use tools like the CME FedWatch Tool to anticipate policy shifts and adjust their strategies accordingly.