Earn Your First Bitcoin Sign up and get Bonus Referral bonus up to ,000 Sign up The Fed recently made the decision to hike rates again, but the situation appears to be quite different according to various bitcoin and crypto analysts. The Fed and Bitcoin: Working Off Each Other? This is the tenth hike instituted by the Fed over the past year or so, and many believe this could be the last one… at least for a while. They are certain that with the agency now stepping back and allowing things to cool down for a while, bitcoin is going to endure a humongous rally, and the world’s number one digital currency by market cap could wind up spiking to unprecedented levels in the coming months or
Topics:
Nick Marinoff considers the following as important: Bitcoin, Bitcoin News, fed, News, Tim Draper
This could be interesting, too:
Aayush Jindal writes Solana (SOL) Price Analysis: Recovery Could Face Many Hurdles
Bena Ilyas writes Solana-Based Meme Coin Bonk Killer Hits 8T Market Cap to Trap Investors
Godfrey Benjamin writes Binance France: CZ’s Conviction Puts EU Access at Risk
Chimamanda U. Martha writes Indonesia’s Election Results Could Boost Crypto, Say Observers
Earn Your First Bitcoin Sign up and get $12 Bonus Referral bonus up to $3,000
Sign upThe Fed recently made the decision to hike rates again, but the situation appears to be quite different according to various bitcoin and crypto analysts.
The Fed and Bitcoin: Working Off Each Other?
This is the tenth hike instituted by the Fed over the past year or so, and many believe this could be the last one… at least for a while. They are certain that with the agency now stepping back and allowing things to cool down for a while, bitcoin is going to endure a humongous rally, and the world’s number one digital currency by market cap could wind up spiking to unprecedented levels in the coming months or weeks.
Markus Thielen – head of research at crypto services provider Matrix Port – said in a recent interview:
While the Fed has raised interest rates by another 25 basis points, the probability that this was the last hike for this cycle is high, which could set up the market for another strong rally.
The interesting thing is that 2022 was a year in which rate hikes were relatively constant, and they did little to nothing positive for bitcoin and its digital cronies. These assets repeatedly fell flat on their faces after rate hikes occurred, suggesting they were not the anti-inflation tools so many analysts and advocates had touted so many times before.
However, the Fed has already hiked rates a few times in 2023, and interestingly, bitcoin appears to be either unaffected after they occur, or the asset endures a small price jump that makes many people wonder if perhaps the asset is gaining maturity and learning to develop a thicker and stronger skin considering the ongoing financial debauchery.
Thielen further said:
At the same time, we continuously see bank failure, which requires liquidity injections and guarantees from the government for any acquiring party.
Lewis Harland – Decentral Park Capital’s portfolio manager – was also quick to throw his two cents into the mix, stating:
You see outperformance of bitcoin within the crypto market when regional bank share prices collapse. This signals that bitcoin is the high-quality, anti-dollar liquid play for investors as the crisis unfolds further. A break of 50 percent would likely signal a new market regime of prolonged bitcoin outperformance within the market.
Tim Draper Thinks BTC is Gonna Shoot Up
Venture capitalist and bitcoin bull Tim Draper also believes bitcoin is going to spike to new highs relatively soon. He recently commented:
If the bear gets that angry to where the banks start falling apart, that actually means that bitcoin will have a bull market. It’ll be a raging bull in the middle of the bear… If they are regulating by enforcement, they’re just slapping people down and fining them and suing them. I don’t want to waste years of my life in court and trying to avoid some problem.