Griffin Ardern, the volatility trader at cryptocurrency management firm Blofin, predicts a drop in the price of Bitcoin after the price increase. “Given that the overall risk level of the cryptocurrency market has not returned to reasonable levels, it is very likely that the price of BTC will drop by more than 10% after the Fed rate hike,” she said.
Dick Lo, founder and CEO of trading company TDX Strategy, sees the landscape differently. He believes that rising interest rates could lead to a recovery in the price of Bitcoin and other cryptocurrencies. Furthermore, it becomes clear that Ether (ETH) could be favored with a higher upside.
“Bitcoin and the broader cryptocurrency market could see another rally after the 75bp rate hike. After that, we expect markets to trade sideways, while Ether may outperform in anticipation of the merger,” he said.
Trader and analyst Alex Kruger predicts that the cryptocurrency market could experience a slight rebound after climbing 75 points. However, he warns that if the upside is greater, there will be a downside.
Similarly, analyst Wendy O said we shouldn’t see a negative impact on the market for a 75bp hike. However, be aware that Bitcoin and other cryptocurrencies could be affected when it gets bigger or when the second quarter GDP report comes out.
Similarly, Joshua Fernando, CEO of eCarbon, said: “75 basis points seems to be the consensus, so if we see something materially higher and that kills the stock market, then I expect the cryptocurrency market will be too.” .
It also speculates that the cryptocurrency market will not decline if the interest rate hike is lower. He summed up that the most important thing will be the leadership of the Fed. “If the Fed Reports Big Hikes Through 2023, Expect More Market Pain”I reasoned.