Thread by @cillionaire_com

Is another 𝐂𝐫𝐲𝐩𝐭𝐨 𝐜𝐫𝐚𝐬𝐡 coming ❓

Let’s see what the #FOMC meeting is and its impact on your portfolio

🧵👇

🔶Last year, the primary reason behind the crypto crash was the #Fed aggressive rate hike announcements at the FOMC meeting because of rapid inflation.

WHAT IS THE FOMC MEETING?

🔶The FOMC (Federal Open Market Committee) meeting is a session held by the members of the Federal Open Market Committee to decide on the
monetary policies of the USA.

🔶Their main focus is to keep a balance between #inflation and #Unemployment.

🔶The current FED funds rate ranges from 4.25% to 4.5%.

🔶The next FOMC meeting is scheduled for January 31–February 1st with the announcement of a rate hike scheduled for February 1 at 2:30 p.m. ET.

WHY IS IT IMPORTANT?

🔶During the FOMC meeting, the members discuss monetary policy and target FED fund rate to achieve their aims.

🔶Every asset, from #crypto to #stocks, is affected by any change in the FED funding rate.

🔶It also impacts the prices of goods and services.

IMPACT ON #CRYPTOCURRENCY

🔶A higher interest rate is bad for the markets because interest payments on borrowed money go up.

🔶It incentivizes people to save more and spend less, which causes company profitability to go down.

🔶As we know, crypto and stocks are correlated, so because of lower profitability, stocks go down, and crypto goes down even more because of its ease of
liquidity.

WHY SHOULD YOU CARE?

🔶The market is expecting a 25 basis point rate hike, and maybe this will be the last rate hike because inflation is coming down rapidly.

🔶If the FED signals that they are stopping the rate hike, then we will see many green candles in the coming weeks and months.

Do you think it's the last rate hike from the FED ?

#BTC #ETH #Aptos

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