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4 months ago

Fed Rate Hikes Startle Crypto Market

Benzinga
Benzinga
The Federal Reserve raised the target fed funds rate by a quarter percent to between a quarter and a half percent, the first-rate hike since 2018, a move that has startled crypto analysts and caused concern among investors. Edward Moya, a Senior Market Analyst at OANDA, said that “the dot plots show that the Fed is expecting to raise rates at every meeting going forward. The Fed also said they will begin reducing its asset holdings at a coming meeting.” He also said that “Bitcoin remains stuck in its $37,000 to $45,000 trading range and that should remain the case over the short-term.” Delta Exchange CEO Pankaj Balani added that shorts are building up near the $40,000 price range, saying, “This creates a possibility of a short squeeze, any conclusive break above 40,000 can see a sharp move up. Such a squeeze can potentially push to the $45,000 to $47,000 zone.” At press time, Bitcoin was trading just over $40,000, up nearly a percent on falling volume and a slight uptick in its market cap.