What are the potential effects of the FOMC's interest rate decision on the value of digital assets?

1 answers

• Md HabibJul 09, 2021 · 4 years ago
  As an expert at BYDFi, I can say that the FOMC's interest rate decision can have a significant impact on the value of digital assets. Historically, there have been instances where changes in interest rates set by the FOMC have led to notable movements in the cryptocurrency market. For example, when the FOMC raised interest rates in 2018, it coincided with a significant decline in the value of Bitcoin and other cryptocurrencies. This suggests that changes in interest rates can influence investor sentiment and market dynamics, affecting the value of digital assets. However, it's important to note that the cryptocurrency market is highly volatile and influenced by various factors, so the relationship between interest rates and digital asset values may not always be straightforward.
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