How do the Fed’s interest rates impact the crypto market?

Bitcoin News

The show Macro Markets, hosted by Marcel Pechman, which airs every Friday at 12 pm ET on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events on the day-to-day crypto activity.

In today’s episode, crypto analyst Pechman analyzes the United States Federal Reserve interest rate and its relationship with cryptocurrency markets. For instance, high-interest rates are detrimental to risk assets. However, investors usually price today’s action on how the economy will be in six months or longer.

Viewers will learn why trusting charts and indicators can be misleading, as anyone can pick timeframes and scales that favor their biases and opinions. Pechman shows this in real-time by literally adjusting the scales and time frames to match his school of thought.

The episode continues by explaining the correlation between Bitcoin and the stock market — especially when investors fear a recession is coming or the cost of capital favors fixed income — followed by a deep dive into volatility indicators, including the stock market volatility index (VIX). 

Pechman goes on to explain how the most common volatility metric is backward-looking and even more complex instruments, such as the VIX indicator, should be interpreted.

To close the Macro Markets show, Pechman will apply his expert knowledge to explain real-life examples from gold markets, Tesla stocks and news articles in a straightforward and non-technical manner.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, make sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday at 12:00 pm ET.

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