$ETH

$ETH $XRP #FederalReserveIndependence When The Fed Speaks, Crypto Shakes – The Importance of Federal Reserve Independence in the Crypto World

Amidst global market fluctuations, a single statement from the Federal Reserve (The Fed) can shake the prices of Bitcoin and altcoins. But why does it have such an impact?

The answer lies in the independence of the Federal Reserve—the ability of the U.S. central bank to make decisions without political intervention. The Fed's decisions on interest rates, inflation control, and monetary policy have a direct impact on traditional markets and the crypto market.

What does it have to do with crypto?

When The Fed raises interest rates, risky assets (including crypto) tend to weaken as investors move to safer assets.

When inflation is out of control and confidence in fiat currency declines, crypto like Bitcoin is viewed as an alternative "store of value."

This is why crypto market participants closely monitor FOMC meetings, Jerome Powell's speeches, and the release of U.S. economic data.

Without The Fed's independence, the market could be chaotic.

Imagine if monetary policy were solely based on short-term political interests—crypto could become more volatile than ever, and investor confidence would collapse.

Conclusion:

Crypto may have been born from distrust in the old financial system, but its future is still heavily influenced by the decisions of institutions like The Fed. Therefore, maintaining the independence of the Federal Reserve is not only important for Wall Street but also for Web3.