#BTC#

The impact and significance of the Federal Reserve's interest rate hike on the market
1. Interest Rate Hike: The "Brake" on Capital and the "Cold Wave" on Currency Prices
When the Federal Reserve announces an interest rate hike, the market often experiences a "migration of capital." An interest rate hike means the cost of borrowing in dollars increases, bank deposit rates rise accordingly, and investors tend to prefer putting their funds in banks rather than investing in high-risk assets. For example, in 2022, the Federal Reserve raised interest rates 10 times in a row to curb inflation, the dollar index once broke 114, while the price of Bitcoin plummeted from $60,000 to $16,000, a decline of up to 73%.

II. Interest Rate Cuts: The "Engine" of Capital and the "Warm Flow" of Cryptocurrency Prices
In stark contrast to interest rate hikes, interest rate cuts often provide a boost to the cryptocurrency market. After the outbreak of the COVID-19 pandemic in 2020, the Federal Reserve urgently cut interest rates to zero and initiated quantitative easing, causing the price of Bitcoin to soar from $3,800 to $29,000 by the end of the year, an increase of over 650%.
#Gate 荣获 “2025 年度最佳加密货币交易所”大奖#