Fed Hints at 0.75 percent Rate Hike, Another Crypto Crash in November?
Bitcoin displayed early indications of the cryptocurrency crash in November as news hinted that the Fed might increase interest rates. At their meeting on November 1 and 2, the Fed officials allegedly intend to raise interest rates by 0.75 percentage points again.
Early signs were shown by Bitcoin (BTC)
Bitcoin (BTC) displayed early indications
of a cryptocurrency meltdown in November as reports hinted that the Federal Reserve may increase interest rates.
Bitcoin displayed early indications of the cryptocurrency crash in November as news hinted that the Fed might increase interest rates. At their meeting on November 1 and 2, the Fed officials allegedly intend to raise interest rates by 0.75 percentage points again. The Fed is also likely to discuss suggesting a lesser rate move in December during the meeting. In the meantime, the price of Bitcoin (BTC) plunged on Friday after news that the Fed would raise interest rates in November.
Possible December Hike Soon?
Officials of the Federal Reserve seem to make borrowing expensive in order to reduce consumption. The policymakers desire greater borrowing costs and lower asset prices, the Wall Street Journal reported. In order to slow economic activity, spending, hiring, and investment will be reduced. Thus, the policymakers intend to gradually decrease demand and, as a result, inflation. The comments made by Fed officials on several occasions recently make this intention clear. Meanwhile, it appears that the officials intend to keep raising rates throughout December.
On the other hand, several Fed officials favour delaying the interest rate increase. In this situation, it is still unclear how the crypto market would respond to the choices to raise interest rates. But the probable easing of interest rate increases in the first few months of 2019 might cause Bitcoin's link with the macro market to end. BTC has been stuck around $20,000 for the past few months. Experts believe it to be a response to the extended quiet period in the cryptocurrency market amid growing inflationary concerns.
Crash Or Resistance In Crypto?
The potential for yet another cryptocurrency crash in November in this setting could be deadly for the industry right now. The markets have only recently begun to show positive signs of revival. According to the most recent forecast, the cryptocurrency market is getting closer to the bottom of the fall. Arca CEO Rayne Steinberg has stated that the market is more likely than not close to recovering from the current downturn. Any deviation from the correlation in BTC may potentially portend the start of the eagerly anticipated altcoin season. Currently, more traders are willing to take short-term gains than hold positions for extended periods of time. BTC's price is currently $19,020, down 0.92% over the previous 24 hours, according to market monitoring site CoinGabbar.
