$BTC Health and encouragement to all !!!
Usually, statements by the US Federal Reserve (FRS) have a significant impact on financial markets, including the cryptocurrency market. This is due to the fact that the Fed's decisions on monetary policy (for example, changing interest rates) affect the overall economic climate and investors' appetite for risk.
How the Fed's statements can affect crypto:
Raising rates usually leads to an outflow of investment from risky assets, such as cryptocurrencies, to more stable assets. Lowering rates, on the contrary, can stimulate interest in risky assets. If the Fed signals concerns about inflation, this can lead to increased volatility in the cryptocurrency market.
The Fed's statements often reflect the general state of the economy. If the economy is growing, this can have a positive effect on the cryptocurrency market, and vice versa.
The best indicator of how the market has reacted to a Fed statement is the price reaction of cryptocurrencies immediately after its release.
Fed statements can influence short-term price movements, but long-term trends in the cryptocurrency market are determined by fundamental factors.$TON