Changes in interest rate policy can significantly affect bitcoin and other digital assets; Lower feet drive investments in cryptocurrencies in order to obtain higher returns (from investment), while higher feet discourage investment due to increased loan costs and better profits elsewhere. This policy also has an impact on market moods, fluctuations and the role of Bitcoin as protection against inflation, with a wider cryptocurrency market can react in different ways depending on the economic conditions and specific applications of assets. However, the reaction of the cryptocurrency market to changes in interest rates is complex and includes many factors beyond the monetary policy itself
Donald Trump’s probitcoin position aroused institutional interest, and activities such as executive ordinances and the potential creation of the Bitcoin reserve encourage greater financial commitment of the mainstream in cryptocurrencies. The actions of his administration in the direction of regulatory transparency, including task groups and a change in politics, are aimed at creating a more favorable environment for digital assets, potentially increasing institutional adoption. However, the full impact on the adoption and transparency will depend on the implementation of the policy, its durability and global regulatory dynamics
