Federal Reserve says it will raise interest rates in March, crypto market crash
The Crypto market saw another correction due to the first interest hike plan of the US Central Bank.
December 2021 to January 2022 time was not better for this crypto industry. Since January, the market has faced huge corrections in the prices and the whole credit for these big and multiple corrections goes to the decision of the US federal reserve announcement of the plan to hike the interest four times for this year.
In the morning of 27 January, the crypto Market followed the downfall because of the Fed’s latest announcement by Fed on the first hike in interest rates.
On 26 January, the US Fed announced the first hike in the interest rate will start from March of this year.
The pre-planned idea of Fed Res will increase the interest rate four times this year. And it is believed that such decisions will help the economic situation in the global economy because these steps will motivate people to put their money in banks instead of choosing crypto or the stock market.
Due to the impact of this decision, the crypto market followed a loss of $600 billion this year. And if we compare this downfall then it is 26% since 1 January 2021.
In this correction, Bitcoin faced a 4.4% plunge and other flagship assets faced 8-10% corrections. At the time of writing this article, the price of Bitcoin is $35,900.
Hike in interest rate, really a negative decision?
According to experts’ point of view, such decisions always remain helpful for the citizens and better economy of the country because people don’t think of choosing another options to fight against inflation, instead of saving money in Bank account.
The majority of the experts said that such decisions will not put any kind of negative impact on the price of bitcoin because these sudden actions are based on the past results, where people have a fear that huge panic will result in a big downfall as took place in beginning of Q1 2021, where Fed did only discussion to increase but didn’t planned any calendar for the same.
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