Since 2023, the U.S. Federal Reserve has kept the rate at 5.25โ5.50% โ the highest in two decades. How is cryptocurrency responding to this?
The dynamics have been analyzed and presented in the chart ๐
๐ Key findings:
โ
The period of tight monetary policy (Q2โQ4 2023) is accompanied by stagnation and correction in the BTC and ETH markets.
โ
Since the beginning of 2024, despite the stable rate, the crypto market has started to recover.
โ
BTC has risen by 63%, ETH โ by 55%, while the Fed's rate remained unchanged.
This means: the recovery of the crypto market is not due to a rate cut, but on expectations of policy easing. Market psychology โ anticipates the Fed's actions.
๐ What's next?
If at the September 2025 meeting the Fed signals a rate cut:
ยท ๐ Investors can expect a new phase of growth for digital assets;
ยท ๐ก๏ธ But as long as the rate remains high โ volatility and pullbacks are not excluded.
๐ก Conclusion:
The crypto market lives on expectations, not facts. But when expectations become reality โ movement begins. Keep an eye not only on the rate but also on FOMC forecasts and the U.S. labor market.
#Fed #BTC #ETH #BinanceSquare #inflation #cryptomarket #FedRate #investors #macroeconomics #FOMCMeeting
