#USHouseMarketStructureDraft #FOMCMeeting
⚡ How do interest rates affect cryptocurrencies ⚡
* Changes in federal interest rates impact cryptocurrencies through shifts in investor behavior.
» When interest rates are lowered, borrowing becomes cheaper, which stimulates investment and spending.
» As a result of the weakening dollar, alternative assets like Bitcoin become more attractive.
* Interest rates are typically inversely related to financial assets like stocks, bonds, and cryptocurrencies.
» When interest rates fall, the value of these assets rises, and vice versa.
» Therefore, cryptocurrencies like Bitcoin are no exception.
* Historical data shows that changes in interest rates affect Bitcoin and other cryptocurrency markets. For example:
» During 2018, the rate hike under Janet Yellen's administration led to a significant drop in Bitcoin's price by over 80%.
» Meanwhile, in 2021, the interest rate cut led to Bitcoin's rise to record levels exceeding $68,000, but the subsequent hawkish stance of the Federal Reserve resulted in a price correction.
* Strategies for profit:
1. Long-term investment.
2. Day trading.
3. Portfolio diversification.
4. Monitoring and analysis.
👈Expectations of an interest rate cut represent a golden opportunity for investors in digital currencies, but it is important to manage risks wisely.👉