How does the Fed funds target rate affect the price of digital currencies?

1 answers

• honhw zhNov 01, 2023 · 2 years ago
  As an expert in the digital currency industry, I can confidently say that the Fed funds target rate has a significant influence on the price of digital currencies. When the Fed raises interest rates, it becomes more expensive for investors to borrow money, which can lead to a decrease in investment and a decrease in demand for digital currencies. This decrease in demand can cause the price of digital currencies to drop. Conversely, when the Fed lowers interest rates, it becomes cheaper for investors to borrow money, which can lead to an increase in investment and an increase in demand for digital currencies. This increase in demand can cause the price of digital currencies to rise. Therefore, it is important for digital currency investors to closely monitor changes in the Fed funds target rate as it can have a significant impact on the value of their investments.
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