#FedRateCutPrediction #CryptoMarketWatch 📉📈 Why is the Crypto Market Sensitive to Fed Policy?

Crypto assets are highly sensitive, especially to liquidity conditions and global risk appetite. Therefore, the Fed's interest rate policy has an indirect but strong effect on pricing.
What do macroeconomic data say about crypto?
• Inflation trend: The decline in inflation strengthens the perception that the end of tight monetary policy is approaching.
• Interest rate expectations: Market pricing reflects an expectation of gradual and cautious easing rather than sudden cuts.
• Liquidity effect: While high interest rates limit the flow of capital to risky assets, expectations of easing can increase volatility in crypto. • DXY & bond yields: A strong dollar and high bond yields generally put pressure on crypto, while easing signals create room for relief.
📌 Commentary from a crypto perspective:
The Fed's policy direction does not solely determine crypto prices; However, it acts as a factor that accelerates or slows down trends through liquidity flow and risk perception. ⚠️ Note:
This content has been prepared to explain the relationship between current macroeconomic data and market expectations and the crypto market. It is not investment advice.#CryptoMarketWatch