A six-year veteran in the cryptocurrency industry, Andrew Weiner is Vice President of MEXC Global. A pioneer in RegTech and digital identity, he is the former managing director of iComplyKYC, working with well-known brands such as Thomson Reuters, ComplyAdvantage, IBM, Mastercard, Deloitte, and KPMG to provide virtual asset services in over 170 countries. We have provided innovative solutions to providers.
What is the impact of the Fed’s interest rate hike on crypto markets?
Data from US.Department of Labor shows the unemployment rate at the time was much higher than the 3.5 percent that had prevailed without major signs of tightness before the pandemic.
Employment was still millions below its level on the eve of the pandemic. There is a significant and persistent labor supply shortfall opened up during the pandemic—a shortfall that appears unlikely to fully close anytime soon.
All indicators and statistics point to the possibility of a recession. As a result, the market's expectations for a 50 basis point rate hike in December jumped from 66% to 77%, fueling market dovish expectations.
Following the news, Bitcoin (BTC) surged about 1% to $16,982. Conversely, U.S. stocks rose, led by the Nasdaq Composite, to No. 4 on Mr. Powell's dovish speech. Other major indexes also rose on the Fed's comments. The Dow Jones Industrial Average rose 737 points and the S&P 500 rose more than 3%. BTC is slightly decoupled from US stocks.
The Federal Reserve will formally begin discussing the issue of rate hikes on January 25-26, 2022. The central issue is to solve the economic problems caused by increased US dollar liquidity in 2020 and beyond. According to MEXC, BTC price has become immune to rate hikes since the first rate hike announced in March.
What is the impact of the Fed’s interest rate hike on crypto markets?
Data from US.Department of Labor shows the unemployment rate at the time was much higher than the 3.5 percent that had prevailed without major signs of tightness before the pandemic.
Employment was still millions below its level on the eve of the pandemic. There is a significant and persistent labor supply shortfall opened up during the pandemic—a shortfall that appears unlikely to fully close anytime soon.
All indicators and statistics point to the possibility of a recession. As a result, the market's expectations for a 50 basis point rate hike in December jumped from 66% to 77%, fueling market dovish expectations.
Following the news, Bitcoin (BTC) surged about 1% to $16,982. Conversely, U.S. stocks rose, led by the Nasdaq Composite, to No. 4 on Mr. Powell's dovish speech. Other major indexes also rose on the Fed's comments. The Dow Jones Industrial Average rose 737 points and the S&P 500 rose more than 3%. BTC is slightly decoupled from US stocks.
The Federal Reserve will formally begin discussing the issue of rate hikes on January 25-26, 2022. The central issue is to solve the economic problems caused by increased US dollar liquidity in 2020 and beyond. According to MEXC, BTC price has become immune to rate hikes since the first rate hike announced in March.
