Relaxing Chat About the Fed, Interest Rates, and Bitcoin Prices: My Experience in the Crypto World

Relaxing Chat About the Fed, Interest Rates, and Bitcoin Prices: My Experience in the Crypto World

I still remember when I first got involved in the crypto world. At the time, I only knew that Bitcoin's price fluctuated crazily, but I didn't understand why. It wasn't just hype or Elon Musk that caused Bitcoin's price to fluctuate... there was something called the Fed interest rate that also played a role.

At first, I was confused. "Fed interest rates? What does that have to do with Bitcoin?" Well, I'll explain from personal experience to make it easier to understand.

1. Fed and Interest Rates: The Boss of America's Money

So, the Federal Reserve, aka the Fed, is like America's central bank. They set the base interest rate — basically, how much or how cheap people can borrow money.

When the Fed "raises interest rates," it means borrowing money becomes more expensive. People and investors become more cautious about spending money, and they usually withdraw money from assets considered "high risk" like Bitcoin.

Conversely, if the Fed "lowers interest rates," borrowing becomes cheaper. Investors are happy, they're more willing to take risks, and Bitcoin usually rises because many people are buying for "speculation."

2. My Personal Experience: Learning From Panic

At that time, I had just bought Bitcoin when the Fed was aggressively raising interest rates. The Bitcoin price was unstable, and I was really nervous every time I looked at the chart. I thought, "Ah, this is the Fed bullying crypto." ????

But from that experience, I learned one thing: the Bitcoin price isn't just about hype. When the Fed lowered interest rates a few months later, the Bitcoin price began to slowly rise. I, who had been panicking, finally breathed a sigh of relief and smiled to myself as the chart rose again.

From that, I understood that the decisions of a central bank far away in America can have a real impact on the entire market, including crypto. So even though I live in Indonesia, I still have to follow global economic news.

3. Other Factors I've Learned

Besides the Fed's interest rate, I've also realized that there are other factors that influence Bitcoin's price:

Market sentiment: Positive or negative news can cause the price to fluctuate drastically.
Institutional adoption: If large companies start buying Bitcoin, the price usually rises.
Liquidity and trading volume: The more people buying and selling, the more volatile the price.

But what surprised me was that macroeconomic factors like the Fed's interest rate are sometimes more powerful than all the hype on Twitter.

4. My Relaxing Tips for Crypto Friends

1. Follow global economic news, especially Fed decisions.
2. Don't FOMO when the price is rising or falling.
3. Understand the risks before entering crypto.
4. Relax: crypto is a marathon, not a sprint.
5. Learn from personal experience: every crash or rally is a valuable teacher.

Conclusion: Crypto Is Relaxing, But You Have to Understand the Flow

From my experience, I've learned that Bitcoin's price isn't just a number on a chart. There's a bigger story behind it, including the Fed's decision on interest rates. If you understand the flow, you can be more relaxed in the face of volatility, not panic every time the price drops, and make smarter decisions.

The bottom line is, "crypto is fun," but don't just follow the hype — first understand why the price fluctuates. That way, your journey in the crypto world will be calmer and more profitable.