🏦 How Fed Interest Rate Decisions Move Both Forex & Crypto – Case Study with EUR/USD & BTC
The U.S. Federal Reserve’s interest rate decisions remain the single most powerful driver in global markets. In 2025, traders are seeing how the Fed impacts not just forex pairs like EUR/USD, but also crypto assets like Bitcoin.
🔹 Forex Impact (EUR/USD)
Higher Fed rates = stronger USD, weaker EUR/USD.
Lower rates = weaker USD, EUR/USD climbs.
Example: A surprise rate hike in 2024 triggered a sharp EUR/USD drop as dollar demand spiked.
🔹 Crypto Impact (BTC/USDT)
Rate hikes tighten liquidity → investors move away from risk assets like BTC.
Case: BTC surged after the Fed signaled potential easing in early 2025.
📊 Key Takeaway
Forex and crypto now share a macro heartbeat: the Fed.
EUR/USD reacts as a classic currency pair, while BTC behaves like a high-beta alternative currency—more volatile, but increasingly tied to USD liquidity cycles.
👉 Smart traders in 2025 track Fed policy not just for forex, but also to anticipate crypto moves.