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 in green as the top cryptocurrency, Bitcoin has reclaimed its $23,000 range. Even Ethereum, the second-largest cryptocurrency by market capitalization, broke 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.
According to reports, the Federal Reserve is expected to raise interest rates again for the third month in a row. The next Fed meeting scheduled for next week will see an interest rate hike of 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.
Therefore, it can be said that as spending increases, purchasing power declines, leading the economy into turmoil.
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 press time, Bitcoin is changing hands at $23,190 with an increase of 1.41% in the last 24 hours. The Federal Reserve will increase its interest rate by 0.75%, how will this affect the price of Bitcoin?
