How do changes in monetary policy impact the price volatility of cryptocurrencies?

1 answers

• Mar 22, 2022 · 3 years ago
  At BYDFi, we've observed that changes in monetary policy can have a significant impact on the price volatility of cryptocurrencies. When central banks make adjustments to interest rates or implement quantitative easing measures, it can create a ripple effect in the crypto market. Investors closely monitor these changes as they can influence the supply of money and investor sentiment. As a result, the price of cryptocurrencies can experience sudden spikes or drops in response to changes in monetary policy. It's important for traders to stay informed about these policy changes and adapt their strategies accordingly to navigate the volatile crypto market.
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