Changes in monetary policies of major global economies can directly impact cryptocurrency prices. When central banks tighten policies, raising interest rates or reducing liquidity, risk assets like cryptocurrencies often face downward pressure as investors seek safer, yield-bearing assets. For instance, the U.S. Federal Reserve's rate hikes in 2022 led to significant crypto market corrections. Conversely, loose policies, such as quantitative easing or low interest rates, tend to boost crypto prices by increasing liquidity and risk appetite, as seen during the 2020-2021 bull run. However, the effect varies by cryptocurrency and market sentiment. Bitcoin, often viewed as a hedge against inflation, may react differently than altcoins tied to speculative trends. External factors like regulatory news or macroeconomic shocks can also overshadow monetary policy impacts. While correlations exist, causation is not always clear, as crypto markets are influenced by a complex interplay of factors.