Bitcoin faces 2022 parallels as federal reserve resumes rate hikes
Bitcoin’s drawdown mirrors its position before the Fed’s first hike in March 2022, raising questions over whether a relief rally could precede further losses.
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Summary
- The Fed raised rates by 25bps on Wednesday, the first rate hike in over three years.
- Bitcoin was roughly 40% below its November 2021 peak when the Fed began hiking in 2022, then rallied around 18% before subsequently falling around 50%.
- Markets are pricing in another 75 basis points of tightening over six months, while rising oil prices threaten inflation progress.
