
Poloniex Exchange|Sep 08, 2025 08:12
💵 Interest Rates & the Federal Reserve
The U.S. Federal Reserve (Fed) plays a key role in shaping global markets, and crypto is no exception.
📈When interest rates rise:
Investors shift toward safer, yield-bearing assets like bonds or USD savings. This often leads to capital outflows from risk assets, including Bitcoin and altcoins.
📉When interest rates fall or hikes slow down:
Cheaper borrowing and more liquidity encourage risk-taking. Crypto markets usually benefit as funds flow into high-growth, high-volatility assets.
💡 Takeaway: Monitoring the Fed’s policy decisions (like FOMC meetings) gives you early signals of possible market sentiment shifts in crypto.(Poloniex Exchange)
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