Bitcoin and Ether Prices Swing After Fed Raises Interest Rates by Quarter Point

WHY IT MATTERS

The Federal Reserve is the central bank of the United States, and when it raises interest rates, it makes borrowing money more expensive across the economy. Think of it like a thermostat for the economy — raising rates is meant to cool things down when prices are rising too fast (inflation). This matters for crypto because when traditional savings and bonds offer higher returns due to rising rates, some investors may shift money away from riskier investments like cryptocurrencies. That is one reason why bitcoin and ether prices often move sharply right after a Fed decision. Understanding how central bank policy connects to crypto prices is an important part of learning how these markets work.