The upcoming Fed announcement and its likely negative impact on the cryptocurrency market

Hello dear readers, it is worth remembering that the price action of Bitcoin and cryptocurrencies are still recovering from the sudden collapse of the FTX cryptocurrency exchange last month, and to top it off in the next few days the FED will make its interest rate hike announcement which will surely negatively impact the price of Bitcoin.

It should be recalled that the Bitcoin price found a floor at around $17,000 after collapsing from nearly $70,000 late last year, raising fears that the Bitcoin and cryptocurrency industry could be headed for oblivion.

A possible downward adjustment in interest rates is giving bullish expectations to the price of Bitcoin. A forecast that we will see if it will be fulfilled next December 14, the day when the US Reserve report will be published.

Jerome Powell, Chairman of the Federal Reserve, commented in his speech on November 30 that it is time to moderate interest rate increases, however, the expectation is that a 0.5 point downward adjustment is possible, placing interest rates above 3.5%.

Rising interest rates reduce risk investment capital, which translates into less investment in Bitcoin and cryptocurrencies. This could mean that, a future easing in interest rate pressure measures may end up pushing up the price of Bitcoin, as there is more risk capital circulating.

While the market is still reeling from FTX, this could pave the way for the next bull run, which some experts predict could occur in 2023.

Bankrate How Fed rate hikes impact stocks, crypto and other investments. Link

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