@leeaa

The Federal Reserve's interest rate hikes typically lead to increased borrowing costs, making traditional investments like bonds more attractive compared to riskier assets like cryptocurrencies. As rates rise, liquidity in the market tightens, reducing the flow of capital into speculative assets. This often results in downward pressure on crypto prices as investors seek safer options. Additionally, higher interest rates can signal economic concerns, causing risk-off sentiment across markets, including cryptocurrencies. However, some crypto enthusiasts view Bitcoin and other digital assets as hedges against inflation, so the impact can vary depending on investor sentiment and broader market conditions.

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