Analyst: Bitcoin unlikely to repeat 2022 crash on new Fed rate hike
- —In 2022, the Fed raised rates by 425 bps, and Bitcoin fell from $41,000 to $15,800
- —In 2023, four 25 bps hikes coincided with BTC rising from $16,500 to $42,000
- —Now the share of profitable coins has gone from 100% to less than 50%, as in early 2023
- —Risk remains if the market perceives the hike as the start of a new tightening cycle
Why it matters: If the Fed limits itself to 25 bps steps, Bitcoin may avoid a new bear market, but a prolonged tightening cycle would again increase pressure.
Source: TokenPost