Arab Canada News
News
By م.زهير الشاعر
Published: December 19, 2024
Bitcoin has experienced a significant decline of about 5% after the U.S. Federal Reserve announced a rate cut. This decision had a clear impact on global financial markets, as the world's most famous cryptocurrency dropped noticeably in the hours following the announcement.
Bitcoin, like other digital assets, is sensitive to changes in monetary policy, particularly those relating to interest rates. A rate cut encourages the flow of money into traditional markets, reducing the appeal of cryptocurrencies as an alternative investment.
Experts point out that this decline may be a result of investors moving towards other safer assets amid the accommodative monetary policy. However, they also emphasize that the market is still affected by other factors, such as global economic tensions and regulatory decisions regarding cryptocurrencies.
The market is expected to witness further fluctuations in the coming period as the economic impacts of federal decisions continue, requiring investors to adapt to these changes in the market environment.
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