How Interest Rates Influence Bitcoin & Crypto

Interest rates impact traditional and digital assets like Bitcoin. But how?

When rates rise, safer investments attract more funds, pulling money from crypto.

Falling rates often push investors toward riskier assets, boosting crypto markets.

The Fed sets interest rates, influencing borrowing costs and liquidity.

Low rates = more liquidity = bullish crypto. High rates = tight liquidity = bearish.

Big investors adjust crypto positions based on rate expectations.

Stablecoin demand shifts as traditional savings become more or less attractive.

Sometimes, Bitcoin moves independently, acting as "digital gold."

Understanding interest rates helps you navigate crypto market trends.