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Fed signals higher interest rates — fade the crypto rally as Bitcoin slides toward $60K

The new head of the Federal Reserve made it clear he will fight inflation aggressively, possibly by raising interest rates as soon as next month. Higher rates make risky assets like Bitcoin much less attractive, causing its price to slide toward $60,000.

Idea

When the Federal Reserve talks about raising interest rates, investors tend to pull their money out of highly speculative bets like cryptocurrencies because safe government bonds suddenly start paying better yields. On top of that, unraveling funding issues at major corporate crypto buyers are adding intense selling pressure. With central bank policy turning hostile to risk, the path of least resistance for Bitcoin right now appears to be downward.

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BTCETH4H1D#crypto#macro#rates

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