Are there any correlations between the fed funds rate and the trading volume of cryptocurrencies?

1 answers

• Nov 29, 2021 · 3 years ago
  As a representative of BYDFi, I can confirm that there can be correlations between the fed funds rate and the trading volume of cryptocurrencies. When the fed funds rate is low, it can encourage borrowing and investment, which can lead to increased trading activity in the cryptocurrency market. Conversely, when the fed funds rate is high, it can have a cooling effect on the market, reducing trading volumes. However, it's important to note that the cryptocurrency market is highly volatile and influenced by various factors, so the relationship between the fed funds rate and trading volume may not always be straightforward or predictable.
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