London Daily

Focus on the big picture.
Wednesday, Jul 30, 2025

Why the Federal Reserve’s Current Monetary Policy Will Benefit Crypto

Why the Federal Reserve’s Current Monetary Policy Will Benefit Crypto

Since the start of 2021, the crypto markets have been on an absolute tear. Bitcoin and Ethereum — two of the largest cryptocurrencies by market capitalization — are up 97% and 303% year-to-date, respectively.

Since the start of 2021, the crypto markets have been on an absolute tear. Bitcoin and Ethereum — two of the largest cryptocurrencies by market capitalization — are up 97% and 303% year-to-date, respectively.

A big proponent of the fledgling crypto industry’s recent success has been a clear paradigm shift; institutional investors no longer view crypto as an unstable, dangerous asset class. From Coinbase’s direct listing making headlines on Wall St. to Temasek — Singapore’s sovereign wealth fund — purchasing Bitcoin, the growing acceptance of these digital assets is obvious.

Of course, there are many factors that led to this rapid institutional adoption, but what led many corporations to embrace the very asset class they once shunned? The answer is ultra-low interest rates and rising inflation levels.

This Wednesday, the Federal Reserve announced that it would keep interest rates at current levels, while continuing asset purchases of $120 billion on a monthly basis.

“Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement.”

With the economic recovery from the pandemic and the rapid expansion in money supply, the Fed’s long-term target of 2% inflation is likely in line. “Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses,” the central bank said.

This is positive news for the crypto markets, as institutions will continue to turn to the digital asset as a hedge against rising inflation and the weakening dollar. As the Fed stated that its monetary policy will remain “accommodative”, it’s very unlikely that they will raise interest rates to combat inflation in the near term.

Corporations such as Microstrategy, Square and Tesla have opted for Bitcoin on their balance sheets in lieu of cash. As the U.S. central bank clears uncertainty and continues to reiterate its loose monetary policy, the future seems bright for the crypto market.

Source: Fintechs.fi – Fintech News

Comments

Oh ya 4 year ago
The end game is coming and you best have more than computer money. The Fed can NOT raise rates because the US government owes so much money it is borrowing now every year to pay just the interest so a higher rate would bankrupt the country even faster. Like it says the government is also borrowing 120 billion a MONTH trying to stop the stock market from imploding. Investing your deflating dollars in something is a good idea but a dot on a computer will not be your smartist move.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×