@maximilian13e
How do changes in interest rates influence Bitcoin’s price and capital flows into crypto?
Higher interest rates reduce risk appetite, often drawing capital away from volatile assets like BTC. Short term, BTC may dip 5–10% following rate hikes. However, if inflation persists, BTC’s scarcity narrative may regain strength. Long-term, Bitcoin can thrive as an inflation hedge. Capital flows from bonds into BTC may rise as real yields shrink again. Watch Fed statements, CPI data, and bond yields for clues.
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