The Fed's monetary stance continues to dominate market movements. When interest rates stay elevated, risk assets—including crypto—struggle to gain momentum. Market rallies fizzle as higher borrowing costs suppress investor appetite for speculative positions.

The debate intensifies over whether the central bank should pivot toward rate cuts. Proponents argue that lower rates would inject liquidity into markets and reignite growth momentum. Currently, every relief rally faces headwinds from restrictive monetary conditions, making sustained upside difficult.

For crypto traders and investors, the macro picture is crystal clear: Fed policy shifts remain the ultimate catalyst. Whether rate cuts materialize this year could determine whether digital assets break out or consolidate further. Watch the Fed's next moves closely—they'll likely dictate market direction across all asset classes.