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Are there any specific cryptocurrencies that are more sensitive to a hawkish Fed policy?

avatarJiheon BangDec 26, 2021 · 3 years ago1 answers

Which cryptocurrencies are more likely to be affected by a hawkish Federal Reserve policy? Are there any specific cryptocurrencies that have historically shown a higher sensitivity to changes in the Fed's monetary policy?

Are there any specific cryptocurrencies that are more sensitive to a hawkish Fed policy?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    At BYDFi, we believe that the impact of a hawkish Federal Reserve policy on cryptocurrencies can vary depending on the specific cryptocurrency and its underlying fundamentals. While it is difficult to make definitive predictions, certain cryptocurrencies may exhibit a higher sensitivity to changes in the Fed's policy due to their unique characteristics. For example, cryptocurrencies that are primarily used as a store of value, such as Bitcoin, may be more sensitive to changes in monetary policy as they are often seen as an alternative to traditional fiat currencies. Similarly, cryptocurrencies that are designed to provide privacy and anonymity, such as Monero or Zcash, may also be more sensitive to changes in the regulatory landscape and government policies. However, it is important to note that the cryptocurrency market is highly dynamic and influenced by a wide range of factors, so it is always recommended to stay informed and conduct thorough research before making any investment decisions.