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wurphybobe1901

@wurphybobe1901

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How Fed Policy Affects BTC What is the Fed? The Federal Reserve controls U.S. inflation, employment, and financial stability through interest rates, affecting market liquidity. Why does rate hike cause BTC to drop? 1️⃣ Tighter liquidity: Higher rates reduce market money, causing investors to sell risky assets like BTC. 2️⃣ Institutional retreat: Institutions shift to safer assets like USD and bonds, leading to BTC sell-offs. Why does rate cut cause BTC to rise? πŸ™Œ More money: Lower rates increase liquidity, making investors more likely to buy high-risk assets like BTC. πŸ™Œ Institutions return: Institutions buy BTC again, pushing prices up. What should investors do? πŸ”Ή Watch Fed rate decisions. πŸ”Ή If rates are cut, BTC may rise. If rates are hiked, stay cautious. BTC remains a scarce asset despite short-term market fluctuations.
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