Let's talk a little about the FED and how its decisions affect the crypto world.
The FED (Federal Reserve) is the central bank of the United States. Its main function is to control the amount of money circulating in the economy in order to keep prices stable (control inflation) and promote the highest level of employment possible.
Its main tool for achieving this is the benchmark interest rate. On this occasion, the FED estimated that the interest rate would be set at 3.7% (a high figure compared to expectations). In response to this event, investors decide to "protect" their assets by investing in a less risky market, and therefore take refuge in "traditional and stable" fiat currencies like the dollar and in U.S. Treasury bonds.
This obviously causes a large outflow of capital from the crypto digital currency system and, consequently, a drop in prices.
What do you think about this topic?
