Investors await the Federal Reserve’s decision on benchmark interest rates. Bitcoin (BTC)’s correlation with top US stocks remained high as the market posted significant losses. The Nasdaq had its worst four-month performance since 1971. As Kriptokoin.com, we provide the details…
Bitcoin price struggles to break out of the downtrend
The top US stock indexes witnessed significant losses last week. The Nasdaq had its worst four-month performance in fifty years, and Bitcoin (BTC)’s high correlation with tech stocks added selling pressure on the leading cryptocurrency. Crypto markets suffered massive losses and had a tough week as stocks tried to recover.
The crypto economy slumped to $1.79 trillion in a market that investors feared. Investors and analysts believe the Federal Reserve may aggressively raise benchmark interest rates. Typically, an aggressive increase in interest rates is met with increasing selling pressure on cryptocurrencies and technology stocks. Previously, the Bitcoin price had plummeted in response to similar events. As the Nasdaq composite has its worst four-month performance in 50 years, experts believe the Fed’s rate hike decision could further impact Bitcoin and stock prices.
Federal Reserve likely to tighten interest rate
The Federal Reserve is expected to raise the policy rate by 50 basis points next Wednesday, as 8+ percent annual inflation and a tight labor market, volatile trade and The surprise 1Q GDP contraction attributed to inventory difficulties dwarfs. The likelihood of a rate tightening from the Federal Reserve is rising. Analysts evaluated the Bitcoin price trend and the impact of recent events on the asset. “BTC_NFT”, a crypto analyst and investor, believes that Bitcoin price could drop to $36,000, and this is the best time to average more in the leading cryptocurrency.
Some financial institutions and economists, the Federal Open Market Committee ( The FOMC expects it to increase interest rates aggressively next week. Economics writers Lindsay Dunsmuir and Ann Saphir reported “major Fed rate hikes ahead,” and the authors also cited two reports that claimed “hot inflation has peaked.” The report states:
US Federal Reserve (Fed) policy makers seem ready to introduce a series of aggressive rate hikes, at least until the summer, to deal with hot inflation and rising labor costs.
4937
