Griffin Ardern, the volatility trader at crypto asset management firm Blofin, forecasts a drop in the price of bitcoin after the rate increase. “Considering that the overall risk level of the crypto market has not returned to a reasonable level, it is very likely that the price of BTC will fall more than 10% after the Fed rate hike,” he said.
From different eyes, Dick Lo, the founder and CEO of the trading firm TDX Strategie, sees the landscape differently. He believes that the increase in interest rates could lead to a rebound in the price of bitcoin and other cryptocurrencies. In addition, he highlights that ether (ETH) could benefit from a higher rise.
“Bitcoin and the broader cryptocurrency market may see another relief rally following the 75 basis point rate hike. After that we expect markets to trade sideways while ether may outperform in anticipation of the merger,” he said.
As for trader and analyst Alex Kruger, he projects that the cryptocurrency market could see a small rebound after a 75-point rate increase. However, he warns that there will be a drop if the increase is higher.
Likewise, the specialist Wendy O commented that, with an increase of 75 basic points, we should not see negative effects in the market. But she reckons that if it’s bigger or the Q2 GDP report is released, then bitcoin and other cryptocurrencies could take a hit.
Similarly, Joshua Fernando, the CEO of eCarbon, said: “75 basis points seems to be the consensus, so if we see something noticeably higher and it kills the stock market, then I would expect the crypto market to do so.” same”.
Likewise, he speculates that there will be no price drop in the cryptocurrency market if the increase in interest rates is lower. He summed up that the most important thing will be the guidance given by the Fed. “If the Fed signals sharp rate hikes through 2023, expect more pain in the markets”he concluded.
Source: Ambito
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