# Article Introduction
This comprehensive guide examines how Federal Reserve monetary policy directly influences cryptocurrency market dynamics and volatility. The article dissects three critical mechanisms: interest rate transmission effects on capital flows, inflation metrics' role in shaping trader expectations, and cross-asset contagion patterns between equities, gold, and digital assets. Designed for institutional investors, cryptocurrency traders on platforms like Gate, and portfolio managers, this analysis reveals how Fed decisions impact Bitcoin and Ethereum price movements through liquidity cycles and risk sentiment shifts. The framework provides actionable insights for adjusting investment strategies during tightening and easing cycles, while clarifying the deepening interconnection between traditional monetary systems and emerging digital asset markets.
**Keywords:** Federal Reserve policy, cryptocurrency prices, market volatility, interest rates, Bitcoin, Ethereum, Fed policy impact, digital ass