How are you all? I hope you are all doing well, today I will try to find out a very important thing, We often notice that after a few days when the FOMC meeting comes, the entire Crypto pump is seen dumping! Today we will know what is the relationship between FOMC and Crypto Currency? Why is the pump dumped? The full meaning of FOMC is Federal Open Market Committee, And it is a part of the central bank of the United States, and it determines the monetary policy of this country, when they usually decide to change the interest rate, users give their own feedback, and as a result we can see a big change in the Crypto currency market,
This FOMC is held every six weeks, and FOMC meetings are held eight times a year,
And usually in these meetings they discuss the state of the US economy and decide on issues like the Federal Funds rate to keep prices stable and increase employment,
Now if they increase their interest rates, then day investors prefer to keep their money in safe places like bonds or savings accounts, because these places now give better returns,
Investors all know that cryptocurrency is a risky investment, so it is seen to decrease due to this,
Now if the Federal Reserve lowers the interest rate, then the opposite is seen, then as a result of the decrease in interest rates, investors will increase their investments can profit more from, and this can lead to an increase in price,
In simple terms, when interest rates are low, investors are willing to take more risk,
And this is exactly why they are interested in investing in crypto currencies,
Conclusion: The decision of the FOMC meeting can have a major impact on the Crypto market, the main reason for this is that it affects the trajectory through interest rates, inflation and unique unethical policies,
And this is exactly why Crypto Currency investors pay attention to the results of the fomc meeting,
Hope you understand, I am ending here today, everyone be well
0.000 SRY