In what ways do Federal Reserve interest rate cuts and proposed stimulus checks affect Bitcoin’s liquidity and appeal as an inflation hedge?
Why is this the correct answer?
This is correct because when the Fed cuts rates, borrowing costs decrease and fixed-income yields fall, so investors look for alternative stores of value. Extra stimulus checks boost disposable income, some of which may be invested. Beginners should see how monetary policy and fiscal stimulus can drive more capital into risk assets, including cryptocurrencies.
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