📊 Class 46
THE FED SPOKE… AND THE MARKET HARDLY MOVED
This may seem strange, but it is actually a good opportunity to understand something important:
👉 how the FED's decisions influence $BTC.
The Federal Reserve controls interest rates, which is basically the cost of money.
Depending on what it does, market behavior changes.
If the FED raises rates:
Money becomes more expensive.
People and businesses take out fewer loans.
There is less money circulating.
And when there is less liquidity, assets like Bitcoin can be affected.
If the FED lowers rates:
Money becomes cheaper.
There are more loans.
More money circulates in the economy.
And that can favor assets like Bitcoin, because there is more capital looking for opportunities.
And when it decides to keep them, as it did now:
The market enters a waiting phase.
There is no clear signal of where the economy is headed,
and that's why many times the price does not react immediately.
That’s why it’s important to understand that Bitcoin does not move just because of news…
It moves because of what those decisions mean for money in the system.
Understanding this helps you see the market more clearly
and not react just out of emotion.
When I started studying this world of finance and now that I am learning trading, I did not understand the importance of the FED in the market. Now I do, ha ha ha.
And you should also know and study it.
Had you already noticed how the FED's decisions influence Bitcoin?
