@coralshaw
Bitcoin often reacts to Fed rate decisions as they influence global liquidity and risk appetite. Historically, BTC has shown moderate correlation with rate hikes or cuts, rising when dovish policies increase liquidity and falling under hawkish tightening. Correlation strength fluctuates, sometimes aligning more with equity markets than macro policy. Monitoring real-time rate expectations via CME FedWatch, treasury yields, and DXY index provides insight into BTC’s macro sensitivity. While not a perfect correlation, Fed policy is a critical factor shaping short-term BTC sentiment and institutional flows.
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