When the Federal Reserve A.K.A the Fed, puts more money into the U.S. economy, Bitcoin frequently rises in price. We've seen this happen throughout our the token's history. What the Fed does is referred to as injecting liquidity. It describes when the Fed increases the total dollars circulating, typically to boost the economy. More dollars circulating means each dollar is a little weaker. People will look for safer and or stronger places to keep their cash, and Bitcoin seems to be one great safe haven.
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Bitcoin is often referred to as digital gold. I'm not the first to tell that. Since Bitcoin does not reside in any one country and it cannot be printed, it really becomes an attractive investment to store wealth when there are concerns about the dollar losing its value and currently there's a lot of concerns. When the Fed injects more dollars, investors will take more risk in investment. They are taking a risk by purchasing more speculative assets like stocks or Bitcoin and are hoping for a bigger return.
This thing has happened before, specifically in 2020 and 2023. But the problem with this is that it is not a perfect formula. Many other things influence Bitcoin, but watching the Fed may provide clues on a potential future influencing the price of Bitcoin.
I wonder which other coin will be described just as we describe Bitcoin in the future. There may be a possibility that a better crypto with more utility than Bitcoin can overtake it. Perhaps the day, the Bitcoin whales decide to dump, other tokens will seem much better.
