TL;DR
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It was just announced that the Federal Reserve will be hiking interest rates again (0.25% this time) – making it the highest interest rate environment we’ve seen in 22 years.
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This hike means everyone’s loans and lines of credit are about to go up, which means they’ll have less to spend/invest – and this kind of news can often tank market prices.
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But as of right now – Ethereum and Bitcoin are taking the news like absolute champs and holding steady.
Full Story
You know the kid in high school that everyone wanted on their team in gym class? In our year level, that kid was our buddy Ben.
People didn’t pick him because he was good at sport, but because he would happily sacrifice his physical wellbeing in order to win.
For example:
He once dislocated his arm while playing dodgeball – but no one noticed because he not only kept playing, but did so with a smile on his face.
Right now, crypto has BBE (Big Ben Energy).
It was just announced that the Federal Reserve will once again be hiking interest rates (0.25% this time around) – making it the highest interest rate environment we’ve seen in 22 years.
This hike means everyone’s loans and lines of credit are about to go up, which means they’ll have less to spend/invest.
The fear that this kind of news generates can often tank market prices.
…but as of right now – the two ‘big dogs of the crypto market (Ethereum and Bitcoin) are taking it like absolute champs and holding their prices.
(And when ETH and BTC hold steady, the rest of the market tends to do the same).
Let’s hope the crypto market’s ability to hold steady in high interest rate environments is an enduring trait – because papa Jerome (head of the Fed) plans to hike interest rates all the way into 2025.
Yikes!