Bitcoin Rises Above $81,000 as Markets Rally Before 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 less attractive. When it lowers rates, the opposite tends to happen. Think of interest rates like a dial that controls how freely money flows through the economy. Crypto markets often react to these decisions because many investors weigh traditional financial returns against crypto when deciding where to put their money. For newcomers, this is a good example of how crypto prices do not move in isolation — they are influenced by broader economic events and government policy decisions.