How will the Fed's terminal rate forecast affect the price of digital currencies?

1 answers

• Mar 06, 2022 · 3 years ago
  The Fed's terminal rate forecast can have a ripple effect on the price of digital currencies. As the Fed adjusts its interest rate policies, it can influence the overall market sentiment and investor behavior. If the Fed signals a more hawkish stance and indicates a higher terminal rate, it can lead to a decrease in the price of digital currencies. This is because higher interest rates make borrowing more expensive and can reduce the demand for digital currencies. Conversely, if the Fed adopts a more dovish stance and forecasts a lower terminal rate, it can boost the price of digital currencies as investors seek higher returns in riskier assets. It's important to monitor the Fed's announcements and consider their potential impact on the digital currency market.
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