The FOMC decisions go beyond traditional markets - the crypto universe also feels the impacts. When the committee signals an increase in interest rates, risk assets like Bitcoin and Ethereum tend to fall, as capital migrates to safer options. On the other hand, expectations of cuts encourage the search for higher yields, boosting the crypto sector. Traders hang on every word of the Fed chair looking for clues about the direction of global liquidity. In a volatile environment, understanding U.S. monetary policy is essential for anyone investing or operating in the cryptocurrency market.
