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How does the FOMC interest rate hike affect the value of cryptocurrencies?

avatarCoco GatlingDec 24, 2021 · 3 years ago1 answers

What is the impact of the FOMC interest rate hike on the value of cryptocurrencies?

How does the FOMC interest rate hike affect the value of cryptocurrencies?

1 answers

  • avatarDec 24, 2021 · 3 years ago
    At BYDFi, we closely monitor the impact of FOMC interest rate hikes on the value of cryptocurrencies. While it's difficult to predict the exact outcome, historical data suggests that interest rate hikes can have a short-term negative impact on the value of cryptocurrencies. This is because higher interest rates can lead to a stronger US dollar, which can make cryptocurrencies less attractive to investors. However, it's important to remember that the cryptocurrency market is highly volatile and influenced by various factors. Therefore, it's crucial for investors to conduct thorough research and consider multiple factors before making any investment decisions.