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06.12.2025 10:00:00

Why Bitcoin Could Outperform If the Federal Funds Rate Changes

In every market, price is one of the main signals, and for the U.S. dollar itself, that signal is the federal funds rate, which is the short-term interest rate the Federal Reserve targets for overnight lending between banks. As you've probably heard, the Fed's target influences a wide spectrum of borrowing costs, from corporate credit lines to mortgages, and it sets the starting point for yields on relatively safe assets like Treasury bills.When that rate falls or is persistently low, it tends to have pretty positive implications for the prices of cryptocurrencies, especially Bitcoin (CRYPTO: BTC). Here's why.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool