Some investors are closely monitoring Bitcoin’s movements to gauge the impact on the liquidity dynamics of other assets. Bitcoin prices have dropped over the past few weeks as the Federal Reserve suggests interest rates may continue to rise in the future. The policy has tightened financial conditions by increasing Treasury yields and the value of the dollar.
In its latest decision, the FOMC decided to maintain interest rates at 5.25% to 5.50%, unchanged from July 2023. Many in the crypto community are expecting a cut from the US Fed. interest rate cut on May 1, which may have boosted stock and cryptocurrency market prices.
