Global cryptocurrency markets, particularly Bitcoin, are experiencing significant fluctuations due to ongoing inflation uncertainty and the stance of the US Federal Reserve on interest rates.
For investors closely monitoring the market, any signal from the central bank regarding rate hikes or cuts has an immediate impact on cryptocurrency prices.
Recently, expectations of a hawkish Fed—keeping interest rates high for longer—have put pressure on digital assets.
Experts emphasize that, although often seen as a “safe haven” against inflation, Bitcoin has shown high sensitivity to monetary policies and global capital flows.
“Bitcoin is not isolated from the global economy. When interest rates are high, investors tend to prefer less risky assets,” explained a financial market analyst.
Conversely, if the Federal Reserve signals monetary easing and interest rate cuts to stimulate the economy, Bitcoin and other cryptocurrencies are expected to rise, as investor appetite for risk returns.
Currently, Bitcoin remains a focus for investors but is exposed to the influence of monetary policy, inflation, and global macroeconomic uncertainties.
