Monetary Policy: What Every Trader Should Know

Fed rate hikes, quantitative easing, inflation targeting—these aren't just boring economics textbook stuff. They're the invisible hand moving markets, especially in crypto.

Here's the thing: when central banks tighten policy, money gets expensive. Bitcoin and altcoins feel the pressure. When they print, liquidity floods in and risk assets pump. It's that simple.

Let's break down what actually matters:

**The Tools Central Banks Use**
Interest rates, open market operations, quantitative easing—each one hits different. Rate hikes cool inflation but crush speculative plays. QE? That's fuel for bull runs.

**What They're Really After**
Price stability, full employment, sustainable growth. Sounds noble, but the side effects? Wild swings in crypto valuations based on policy shifts.

**How This Hits Your Portfolio**
Rising rates = flight to safety, money exits alts. Falling rates = capital rotates into higher-risk crypto assets. Simple pattern, massive implications.

The traders who get this stay ahead. The ones who don't? They're just guessing.