This is how the crypto market, especially BTC and ETH, reacted amid latest Fed hike

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The Federal Reserve increased the interest rate by a further 0.75% and the crypto markets responded bizarrely. The U.S. interest rates are back to pre-pandemic levels as the battle against inflation rages on. The crypto market has thus rallied in response to the rate hike as trader sentiment shocks market skeptics. Only surprises here Griffin […]

fees dropped by over a third during the week with respect to last week’s values. Furthermore, around $200 million worth of BTC and ETH holdings were taken off centralized exchanges.Correlations between Bitcoin and the Nasdaq 100’s prices have reached their highest in 90 days. Ergo, it is fairly evident that the market “bought the news”, thus improving the crypto’s case as a high-profile asset.In another major development it was found that 60% of BTC belongs to long term investors.

The trend has only increased during the dipping prices in 2022 as Bitcoin continued to shed value. Historically, long term accumulation in crypto has aligned with crypto markets. This further cements the “HODL” mentality which will eventually decide price floors for Bitcoin.The market continues to remain correlated to the current macro conditions “creating its own merits for growth”.

 

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