WHY FOMC RATE DECISION MATTERS IN CRYPTO ?

The FOMC (Federal Open Market Committee) interest rate decision is a crucial event in the cryptocurrency market.FOMC sets interest rate for banking system, but it has an effect on cryptocurrency markets.

Here are a few reasons why the FOMC interest rate decision matters in the crypto market:

1. Overall market sentiment:

If the FOMC signals a more accommodative policy by lowering interest rates or adopting other monetary easing measures, it can create a positive sentiment and vice versa.

2. Borrowing cost:

Higher interest rates can make borrowing more expensive, potentially impacting investors not showing interest in the market .

3. US Dollar Dynamics:

FED dovish by lowering interest- dollar weakens - investors show alternative investment like crypto-currency .

And vice versa.