How does FOMC's monetary policy affect the price of digital currencies?

1 answers

• Dec 27, 2021 · 3 years ago
  At BYDFi, we understand the impact of FOMC's monetary policy on digital currencies. The decisions made by the FOMC can have a profound effect on the price of digital currencies. When the FOMC adopts an expansionary monetary policy, it can lead to increased inflation expectations, which can drive up the prices of digital currencies as investors seek assets that can hedge against inflation. Conversely, if the FOMC adopts a contractionary monetary policy, it can reduce inflation expectations and potentially lead to a decrease in digital currency prices. Digital currency investors should carefully analyze the FOMC's statements and actions to gauge the potential impact on the market. It is important to note that the FOMC is just one factor among many that can influence digital currency prices, and investors should consider a range of factors when making investment decisions.
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