Are there any specific cryptocurrencies that are more affected by a hawkish monetary policy?

3 answers

• Leija REPOct 09, 2025 · a month ago
  Cryptocurrencies like Bitcoin and Ethereum are generally more affected by a hawkish monetary policy. When central banks adopt a hawkish stance, it usually means they are tightening monetary policy by raising interest rates and reducing the money supply. This can lead to a decrease in liquidity and an increase in borrowing costs, which can negatively impact the value and performance of cryptocurrencies. However, it's important to note that the impact may vary depending on the specific cryptocurrency and its market dynamics.
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• kainaixniaowoApr 28, 2025 · 7 months ago
  Yes, there are specific cryptocurrencies that are more sensitive to a hawkish monetary policy. For example, stablecoins like Tether and USD Coin, which are pegged to fiat currencies, may be more directly impacted as they aim to maintain a stable value. When interest rates rise, the demand for these stablecoins may decrease as investors seek higher returns elsewhere. On the other hand, cryptocurrencies with strong use cases and adoption, such as decentralized finance (DeFi) tokens, may be less affected as they are driven by their own ecosystem and utility rather than traditional monetary policy.
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• Prokopenko ProkoMar 24, 2023 · 3 years ago
  According to a recent analysis by BYDFi, a leading cryptocurrency exchange, certain altcoins have shown higher sensitivity to hawkish monetary policies. These altcoins include Chainlink, Aave, and Compound. The analysis suggests that these altcoins tend to experience more volatility and price fluctuations in response to changes in monetary policy. However, it's important to remember that cryptocurrency markets are highly complex and influenced by various factors, so the impact of a hawkish monetary policy may not be the sole determinant of their performance.
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