Interest Rate Hikes!! Will It CRASH CRYPTO!?
Hey Guys,
I hope you all had an amazing holiday weekend!
I managed to get away from the hustle and bustle of London to the English countryside for Xmas - always a treat.
However, I'm back in town now as there is a job to do - keeping you guys updated with the latest content!
Now, if there is one thing that we have observed over the past 2 years, it is how highly correlated Bitcoin and cryptocurrencies have been with the equity markets. Indeed, it seems as if Global Macro factors have proven to be quite a considerable factor in the performance of the asset.
And, in 2022, we are likely to have one of the most consequential economic events to date - monetary tightening.
More specifically, the Fed is rapidly tapering and will completely cease its bond buying program in March. This will then see the tightening cycle where rates will start to go up. In fact, most of the Fed officials that were polled at the most recent meeting think that we are likely to see a total of 3 rate rises next year!
This will of course have significant impacts for the traditional financial system. There are many that think it will lead to a fall in the price of equities as investors start to pivot away from some of these riskier asset classes.
But, the question that we have to ask is what impact this is likely to have on Bitcoin? After all, if that correlation holds true and these institutional investors start to take profit, it could lead to a collapse in the price of crypto. In fact, this is the time that many have been speculating that we could see an end to the bull market.
Well, I explore this topic in great detail in my latest video. I analyse how likely it is that Bitcoin reacts to this and if it does, how likely it is to remain in depressed.
Those rate hikes are happening folks, so I hope this video helps you get a sense of what could happen and why.
Enjoy!
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⛓️ 🔗 Useful Links 🔗 ⛓️
Arcane Research: https://www.research.arcane.no/
Fed Projections: https://www.federalreserve.gov/moneta...
Powell Not Doing Enough: https://www.bloomberg.com/opinion/art...
Dot Forecasts: https://www.cnbc.com/2021/12/15/the-m...
Trillion $ Print: https://www.usatoday.com/in-depth/mon...
Supply Chain Issues: https://www.wsj.com/articles/when-wil...
Start of Fed Tapering: https://www.cnbc.com/2021/11/03/fed-d...
Impact on Consumers: https://www.pbs.org/newshour/show/why...
Bitcoin Inflation Hedge: https://www.aljazeera.com/economy/202...
Fed Buys Corporate Debt: https://www.cnbc.com/2020/06/29/the-f...
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
