How will the Federal Reserve's next interest rate hike affect the value of digital currencies?

1 answers

• Floris van UnenJan 02, 2021 · 5 years ago
  At BYDFi, we believe that the Federal Reserve's next interest rate hike could potentially have a short-term impact on the value of digital currencies. Higher interest rates can lead to increased borrowing costs, which may reduce the liquidity in the market and result in a temporary decrease in the value of digital currencies. However, we also believe that the long-term prospects for digital currencies remain strong, as they offer unique advantages such as decentralization, security, and borderless transactions. Therefore, while the Federal Reserve's interest rate hike may cause some volatility in the short term, we expect digital currencies to continue to grow in value over the long term.
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