Santiment believes that the recent increase in crypto prices happened despite by the Fed’s rate hike
Santiment has suggested a reason why the crypto prices have been going up despite the Fed Reserve’s rate hike.
The rate hike has been partially priced in
On March 16, the US Federal Reserve implemented a scheduled interest rate hike, pushing it up 25 basis points. In anticipation of the rate hike, the crypto market corrected lower.
However, when the event finally took place on Wednesday, Bitcoin pared the 1.5 percent drop it faced in the anticipation of the rate increase – first since 2018.
Since then, the crypto market has been in the green. According to data provided by CoinMarketCap, the top 100 coins are showing an increase over the past 24 hours.
Analytics team of the popular Santiment on-chain data vendor believes that the altcoin surge has occurred because the rate hike has been partially “baked in”.
Bitcoin not affected by rate hike
Right after the rate increase, the leading digital cryptocurrency, Bitcoin, was trading at $40,106 on the EU-based exchange Bitstamp, unaffected by the rate increase.
The Fed intends to continue implementing rate hikes throughout 2022, adopting an ultra-hawkish stance in an attempt to temper inflation and therefore introducing a tighter monetary policy.
Peter Schiff doesn’t believe in the Fed’s hawish stance
SchiffGold chairman, economist and financial pundit, outspoken Bitcoin critic Peter Schiff has commented on Jerome Powell’s (Chairman of the Fed Reserve) hawkish statement that he will do everything possible to bring inflation down.
Schiff has taken to Twitter to say that if the Fed indeed wanted to do what it takes here, the rates would be a lot higher now.
