Bitcoin Approaches $81,000 as Markets Await Federal Reserve Decision

WHY IT MATTERS

The Federal Reserve is the central bank of the United States, and its decisions about interest rates affect the entire financial system, including crypto. When the Fed raises interest rates, borrowing money becomes more expensive, which can make riskier investments like crypto less attractive to some investors. When it lowers rates, the opposite can happen. Think of it like a thermostat for the economy: the Fed adjusts rates to try to control inflation and economic growth, and those adjustments ripple out to every kind of investment. Traders often move their money around before these decisions are announced, which can cause price swings in assets like Bitcoin.