What are the effects of the FOMC meeting on the cryptocurrency market?

1 answers

• May 07, 2022 · 3 years ago
  At BYDFi, we believe that the FOMC meeting can indirectly impact the cryptocurrency market. While cryptocurrencies are not directly affected by the FOMC's decisions, they can be influenced by the broader economic conditions and investor sentiment that result from those decisions. For example, if the FOMC raises interest rates due to concerns about inflation, it can lead to a decrease in consumer spending and economic growth. This can have a negative impact on the demand for cryptocurrencies as people may have less disposable income to invest. Conversely, if the FOMC implements expansionary measures to stimulate the economy, it can potentially increase the demand for cryptocurrencies as investors seek higher returns in a low-interest-rate environment.
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