The Federal Reserve (Fed) has decided to keep interest rates stable after three consecutive cuts last year. This decision has direct implications for cryptocurrencies, investors, and the global economy. Here I explain in 10 key points how this move shakes the markets:

1. Bitcoin as a financial safe haven

When the Fed maintains high or uncertain rates, investors seek scarce and decentralized assets like Bitcoin. The lack of cuts may reinforce the narrative of BTC as "digital gold."

2. Less liquidity, less FOMO

High rates make credits more expensive and reduce liquidity in the markets. Less cheap money means fewer speculative investments in cryptos, affecting volatility.

3. Ethereum and the DeFi ecosystem under pressure

The DeFi sector benefits from low rates, as investors prefer to earn yields on decentralized platforms. With high rates, competition with traditional bonds becomes stronger.

4. Inflation remains high: Bullish for Bitcoin?

The Fed acknowledges that inflation remains "high," which has historically been bullish for Bitcoin, as investors seek protection against loss of purchasing power.

5. Accumulation phase or correction?

If the Fed maintains uncertainty, the crypto market could enter an accumulation phase until there is clarity on future moves.

6. Wall Street and cryptos: a strong correlation

Stock markets react directly to Fed policy. If the S&P 500 falls, cryptos tend to follow, at least in the short term.

7. Global impact on emerging currencies

Countries with weak currencies suffer when the Fed maintains high rates, as it strengthens the dollar. This can lead to greater adoption of cryptocurrencies in regions affected by devaluation.

8. What to expect for Bitcoin ETFs?

Bitcoin exchange-traded funds (ETFs) are on the rise, but a high-rate market may hinder new institutional investments until the Fed provides more signals.

9. The halving cycle vs. Fed policy

Bitcoin faces its next halving in 2024. If the Fed lowers rates later, it could coincide with an explosive bullish cycle for BTC.

10. Powell remains silent on Trump: Political impact in the crypto space?

The Fed avoided commenting on Trump and his future policies. If a new government pushes for more favorable or hostile regulations, the crypto market could react strongly.

Bullish or bearish?

#Binance #FedHODL #MicroStrategyAcquiresBTC $BTC

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