Why 100 Basis Point Interest Rate Hike Spells Doom For Bitcoin And Crypto Market.

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The Federal Reserve is to raise interest rates by 100 basis points. Which would be the biggest rise since it began using overnight interest rates as its primary tool for monetary policymaking in the early 1990s. Citizens of the world’s largest economy are upset by high prices, and opponents point the finger at the Fed; for its early lack of action as liquidity dries off in the crypto market

Before now, Bitcoin’s price had shown no sign of strength or recovery, and it had been moving in jagged patterns. With little overall volatility (with certain exceptions). After a brief rise to the $21K level; the price is gradually falling to retest the demand zone at $18K. Additionally, this zone provides psychological support and coincides with 2017 high.

The Consumer Price Index soared by 1.3% seasonally adjusted and 9.1% over the past 12 months without being adjusted; according to data from the US Bureau of Labor Statistics.

As a result, many of these large organizations are currently holding their coins at a loss, pushing some of them to sell; before their portfolios suffer even greater losses. The Exchange Whale Ratio, a valuable statistic for monitoring whale behaviour, has seen a sharp increase over the previous few weeks, suggesting that whales have significantly increased their Bitcoin deposits to exchanges.

-Nairametrics.

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