Crypto Market Reacts to Fed Rate Announcement

The US Federal Reserve raised interest rates
by 75 basis points last week, the single largest
increase since 1994.

Last Wednesday for us, we have seen that 75
basis points was fully priced in,
So we expected the Fed to take the action
and actually raise rates by 75 basis points.

But there was a recovery rally going after
it because a lot of the kind of the statements
or forward guidance has been actually more
dovish than some others might have expected,
Many people hope crypto market is getting better.

Crypto Market Reacts to Fed Rate Announcement

We think in the short term, all the risk
assets will move in tandem,
Just because we’re in a very extreme risk off
environment at the moment and
it’s very macro driven depending on a lot of the policies
coming out of the central banks in the US
and looking at Japan as well and possibly
else where in Europe.

So it’s quite an interesting time,
Bitcoin and the major tokens as has moved
largely almost 1 to 1 to equities recently,
least personally expect that
to persist in the short term.

But we are seeing some of the more crypto
or on chain events that might happen later
this year while looking at March and possibly
other factors that might have a decoupling
effect from crypto to risk assets in general,
And hopefully that is great for crypto market.

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