It seems like there is a sliver of hope for the crypto market after Bitcoin’s dismal 18-month performance — its price of 20,079.72 USD being the all-time lowest since December 2020. In the last 24 hours, the world’s leading cryptocurrency recovers by 2.67% at time of report.
Just recently, the US Federal Reserve officially implemented the biggest interest rate hike since 1994. Fed Chair Jerome Powell said that their objective is to “bring inflation down to 2% while the labor market remains strong”. The central bank stated that there will be additional increases later this year.
Last month, the Fed announced a 0.5% rate hike and Bitcoin increased in value temporarily before falling in tandem with the stock market. However, the ensuing effect typically manifest a few days later after the announcement.
Analysts found that Bitcoin has a tendency to become volatile once the central bank publicly discloses their decision to raise interest rate. However, the ensuing effect typically manifest a few days later after the announcement.
