1. Introduction
It’s been a little over a week since the Federal Reserve raised interest rates by 0.75%, and in that time, the stock market has taken a beating. But if you look at the crypto market, you’ll see that it’s not afraid of the rate hike. In fact, it seems to be doing just fine.
2. What is the crypto market?
What is the crypto market? In short, it is a digital marketplace where people can buy and sell cryptocurrencies. Bitcoin, Ethereum, Litecoin, and other popular coins are all traded on this market. The crypto market is open 24/7, 365 days a year. It is a global market, with buyers and sellers from all over the world.
The main advantage of the crypto market is that it is not influenced by central banks or other financial institutions. This makes the crypto market much more resistant to economic fluctuations.
3. Why the crypto market is not afraid of the 75bps rate hike
There are a few reasons for this.
- First of all, the crypto market is still in its early stages, so it’s not as affected by interest rates as other markets are.
- Secondly, cryptocurrencies are decentralized, which means they’re not subject to the same kind of financial regulations as traditional markets are.
- And finally, the crypto market is global, so even if one country’s interest rates go up, that doesn’t necessarily mean that the rest of the world will follow suit.
So there you have it! Three reasons why the crypto market is not afraid of the 75bps rate hike.
Some have interpreted Powell’s remarks as a signal that the Fed may be slowing down the pace of interest rate hikes in the future.
This is good news for the cryptocurrency market, as it suggests that the Fed is becoming more cautious about raising rates too quickly and risk stifling economic growth. With the Fed appearing to be more cautious about rate hikes, this should help to ease some of the concerns about the potential impact of higher interest rates on the cryptocurrency market.
4. Conclusion
So don’t be afraid of the next interest rate hike. The crypto market will weather it just fine.
We hope this article has been helpful in explaining this topic. As always, if you have any questions, feel free to reach out to us on social media or through our website.
