@antonio31ahrensb

Interest rate decisions affect crypto differently because digital assets are not tied to corporate earnings. For stocks, higher rates directly raise borrowing costs, squeezing profits. Crypto, however, is influenced through risk appetite and liquidity. Rising rates reduce speculative capital inflows, making investors more cautious toward volatile assets like Bitcoin and altcoins. Conversely, rate cuts often trigger renewed enthusiasm as liquidity expands. Unlike equities, crypto has no intrinsic cash flow, so its valuation heavily depends on macro liquidity. Thus, monetary policy indirectly shapes crypto demand, with rate hikes creating bearish pressure and cuts fueling bullish cycles.

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