Interest Rate Hike Vs Crypto

BREAKING: :us: Federal Reserve raises interest rates by 25bps, a 22-year high.

The Federal Reserve’s decision to raise interest rates by 25 basis points is a significant move that is likely to have a ripple effect across the global economy.

The increase in interest rates is intended to help combat inflation, which is currently running at a 40-year high, it is also likely to have a negative impact on risk assets, such as crypto.

In the short term, the rate hike is likely to lead to a selloff in cryptocurrencies. This is because higher interest rates make it more expensive to borrow money, which can lead to a decline in demand for risky assets.

In the long term, the impact of the rate hike on cryptos is less clear.
Some experts believe that the rate hike could lead to a more sustained decline in the price of cryptocurrencies, as investors become more risk-averse, others believe that the rate hike could actually be a positive catalyst for the long-term adoption of cryptos.

This is because higher interest rates could make traditional assets less attractive, which could lead investors to seek out alternative assets, such as cryptos.

Here are some additional thoughts on the impact of the Fed’s rate hike on crypto prices:

The rate hike is likely to lead to a decline in the price of Bitcoin, Ethereum, and other cryptos.
The decline in price could be more pronounced for cryptos that are seen as more speculative or risky.

The rate hike could also lead to a decline in the trading volume of cryptos.
The long-term impact of the rate hike on crypto prices is uncertain.

Let’s see how this goes aside from the theories above.

4 Likes

Funny enough but crypto and SEC is here to stay , good news will see a pump then SEC news comes a dump of ATL but we are not going anywhere the bull :ox: will come like a theif in the night

1 Like

Lols
Could you permit me to say the SEC is the problem child to crypto.

The know themselves, they comes in session
With the artificial pump and dumps.
We understand them…

But our hopes is that our little bag SHOULD
Not do us unawareness pump.

Hold your bags

2 Likes

I’m lucky I have no debt and can freely use my money wherever.

But big businesses always over-leverage because they can get bailouts, governments have massive debts, and people who bought homes with huge mortgages are screwed.

All those debt-interest payments are going to hurt.

1 Like

It’s also fun to read that high interest rates make it more difficult/less attractive to borrow money in order to invest in risky assets such as crypto when we repeat everyday “do not invest more than you can afford to lose” :smile:

2 Likes

Oh my goodness, I’m so happy for you
You Debt Free, that’s a big flex you know?
The feelings comes with extra peace of mind.

Yes, very correct big companies get screwed too.
But for the government… the rarely get screwed too, when they can easily print more dollar … resulting in inflation.

1 Like

Big businesses over-leverage is that they have access to cheap debt. This is because they are seen as being less risky than individuals or small businesses.

They can borrow money at lower interest rates, which makes it more attractive to take on debt.

( Lols but guess what it hard to pay back when debt accumulate big. Me as an individual it hurts too)

Big businesses often over-leverage because they are trying to grow quickly. Debt can be a quick way to finance growth, but it also comes with risks.

If a business takes on too much debt, it can become difficult to repay it if the business experiences a downturn.

You are also correct that governments have massive debts. This is a problem because it means that governments have to spend a lot of money on interest payments. This can crowd out other spending, such as on education or healthcare. It can also lead to higher taxes.

You are correct that people who bought homes with huge mortgages are screwed. This is because they are now stuck with large debts that they may not be able to afford. This can a devastating impact on people’s financial lives.

All of these debt-interest payments are going to hurt in the long run. They will make it more difficult for businesses to grow, governments to provide services, and individuals to afford their homes. This is a problem that needs to be addressed, but it is not an easy one to solve.

Now my question,?

FROM THIS HIKE IN INTEREST RATE
WOULD CRYPTO BE A SAFE HEAVEN FROM
BUSINESS, GOVERNMENT, INDIVIDUALS?

1 Like

This alone made me laughed.

The advice to “not invest more than you can afford to lose” is still very important, even in a high-interest rate environment.

If you are investing in risky assets, you should be prepared to lose some or all of your investment. This is especially true if you are borrowing money to invest.

Be careful guys.
Lols

1 Like