Fed Hikes Rates: What Will Happen to BTC?

• The Federal Reserve is looking to hike rates again, which could negatively impact Bitcoin and other cryptocurrencies.
• U.S. Treasury Secretary Janet Yellen is warning that the country may run out of money if Congress does not raise or suspend the debt limit.
• Standard Chartered’s Geoff Kendrick believes that Bitcoin could reach $100K per unit due to a lack of faith in fiat currency.

The Fed Could Hike Rates Again

The Federal Reserve is looking into hiking rates again, which could have negative impacts on Bitcoin and other crypto assets. This comes at a time when the U.S. faces issues with its current debt ceiling and Treasury Secretary Janet Yellen is warning that the country may run out of money soon if Congress does not act immediately to raise or suspend it.

What Will Happen To BTC?

Geoff Kendrick, head of foreign exchange research at Standard Chartered, believes that Bitcoin could reach a new high of around $100K per unit as people increasingly lose faith in fiat currency as a stable store of value during times of economic strife. He suggests that “the optimal trade would probably be long bitcoin, short Ethereum” as an effective way to express this trend in the markets.

Potential Impact Of Rate Hikes

The potential rate hikes by the Fed has many traders and investors worried about prices for crypto assets sinking even lower than their present depths should another rate jump occur within the next few weeks. It is unclear what kind of effect such hikes would have on current market conditions; however, it can be assumed that prices would definitely take a hit if they go through with increasing them any further than they already have been this year alone.

Debt Ceiling Concerns

While many are concerned about how higher interest rates could affect cryptocurrency prices, there is also an underlying concern about how raising or suspending the debt ceiling will impact global economics overall – something Treasury Secretary Janet Yellen has warned about multiple times now in her latest notes to Congress regarding America’s financial situation moving forward into June 2023 and beyond.

Conclusion

It remains to be seen just how much these potential changes in fiscal policy will affect Bitcoin, Ethereum, and other cryptos going forward – but one thing is for sure: traders must keep careful eyes on these primary markets moving into June 2023 so they can make informed decisions based off whatever happens next with regards to interest rates and debt ceilings across America and abroad over the coming weeks ahead!