🚨 What is the FOMC and Why It Matters to Crypto Traders
Every few weeks, global markets react to one event — the FOMC meeting. But what exactly is it?
The Federal Open Market Committee (FOMC) is the part of the U.S. Federal Reserve that sets interest rates and monetary policy. While it may sound like a traditional finance thing, its impact on crypto is real and immediate.
🔍 Why Crypto Cares About the FOMC
Interest Rates Drive Risk Appetite
When the Fed raises rates, borrowing becomes expensive. Investors usually flee riskier assets — like crypto.
Lower rates? More risk appetite and potential rallies.
Market Psychology is Key
Even hints or language from Fed Chair Jerome Powell can move prices. The FOMC doesn’t just set rates—it sets the tone.
🗓️ July 2025 FOMC Update
✅ Rates held steady at 5.25%
🟡 Powell said inflation is easing, but not fast enough
🔮 A possible rate cut could come later this year
Market reaction:
: Brief drop, then rebound
ETH: Stable
Altcoins: Mixed performance ($SOL , $LINK saw gains)
📈 How to Trade Around FOMC
Track FOMC dates — Don’t be surprised.
Avoid impulsive trades during announcements — Volatility is wild.
Look for post-FOMC setups — Often better opportunities after the dust settles.
Whether you're a short-term trader or long-term holder, understanding the FOMC gives you an edge in crypto. Macro still matters—even in the decentralized world.
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