#PowellRemarks

Why do the Fed's rates and Powell's speeches affect cryptocurrency prices?

I remember googling this topic at the beginning, so I'll write it down. Maybe you don’t know either😉

Historically, it has been the case that when the Fed lowers interest rates, cryptocurrency increases. Credit money becomes more accessible, more investors appear, there is more demand for risk assets, and prices rise.

Let’s not forget that the Fed usually lowers the interest rate to support the economy (with credit money). And during periods of economic decline, Bitcoin plays a role as a safe haven. Two factors overlap each other.

That's why, when Powell said yesterday that they might not lower the rate, the market disappointedly fell🤷🏻‍♀️

Then apparently he thought it was too early and it rose.

The Fed will officially announce its decision on whether to lower the rate or not on May 7. Most likely, we will also see a big candle there. Let’s see if it’s red or green🤔