Fiscal policy plays a crucial role in shaping cryptocurrency investment strategies by affecting disposable income, liquidity, and investor behavior. Expansionary fiscal policies, which increase liquidity and risk tolerance, tend to boost demand for cryptocurrencies. Conversely, contractionary policies can lead to reduced investment in digital assets. Stimulus packages often trigger short-term rallies in the crypto market, while neutral fiscal policies allow market fundamentals to dictate performance. Investors must adapt their long-term strategies to fiscal changes, including tax policies and public borrowing, to optimize portfolio performance and manage risk effectively.