It appears like the wider cryptocurrency market will close the weekend on a bullish note as the global crypto market is up by 2.15% position at $1.05 trillion.
The overall crypto market is flagged green as the leading cryptocurrency, Bitcoin has reclaimed its $23,000 range. Even Ethereum, the second largest cryptocurrency by market cap, has surpassed its most crucial barrier of $1,500.
However, for Bitcoin, the year 2022 has not been that great where the currency is witnessing a pendulum pattern with bears and bulls going hand in hand. Recently, when Bitcoin had just managed to climb up, news about the Federal Reserve increasing the interest rates popped up.
As per the reports, the Federal Reserve is set to hike the interest rates yet again for the third consecutive month. The next Fed meeting which is scheduled next week will see an increase in interest rates by 0.75%. This could further pull back the bull market.
Effects Of Interest Rate Hike By Federal Reserve
If the Fed decides to increase the interest rates, it’s just not the crypto market or investments that will be affected, even day-to-day life will fall prey to that. As per CNBC reports, if the Fed hikes interest rates by 0.75%, new home purchasers will have to pay between $29,160 to $39,240.
Hence, we can say that as the expenses see a rise, purchasing power dips dragging the economy into turbulence.
In a nutshell, if the Fed decides to increase interest rates by 0.75%, Bitcoin will see a further downfall. This in turn will have a negative impact on the stock market and eventually on the crypto market. Hence, a crash is certain.
At the time of publication, Bitcoin is changing hands at $23,190 with a surge of 1.41% over the last 24hrs. Federal Reserve To Hike Interest Rate By 0.75%, How Will This Affect The Bitcoin Price?