rate

#fedinterest #rate decision is one of the most important events for #global financial markets — and the crypto market reacts within seconds.
The Fed controls the Federal Funds Rate, which directly impacts inflation, liquidity, and the strength of the US dollar. Because crypto is a risk-on asset, its price movement is highly sensitive to Fed policy.
How Fed Decisions Affect Crypto
Rate Hike (Bearish 📉)
When the Fed raises interest rates:
Borrowing becomes expensive
Liquidity decreases
US dollar strengthens
Crypto Impact:
Bitcoin usually drops, and altcoins fall even harder due to reduced risk appetite.
Rate Pause (Neutral ⏸️)
When rates remain unchanged:
Markets stabilize
Investors wait for future signals
Crypto Impact:
BTC often consolidates while altcoins show limited recovery.
Rate Cut (Bullish 📈)
When the Fed cuts rates:
Liquidity increases
Dollar weakens
Risk appetite returns
Crypto Impact:
Bitcoin rallies strongly, and altcoins outperform — often marking the start of a bull phase.
Why the Market Moves So Fast
The biggest volatility usually comes not from the decision itself, but from:
Fed statement tone
Jerome Powell’s speech
Future rate guidance
Even without a rate cut, dovish comments can push crypto prices higher.