What Would a 75 BPS Interest Rate Increase Mean for Bitcoin?—Analysis from MEME Crypto Futures Exchange

Given that it is only a few days away, the FOMC meeting is already looming over the financial markets, including bitcoin. An unfavorable view for the FOMC meeting has been created by historical interest rate hike trends and the ongoing threat of inflation. Another Fed interest rate increase is anticipated in the near future, which will undoubtedly have a significant impact on the cryptocurrency market.

In contrast to other years, 2022 has been an extremely difficult year for economies all across the world, not just those in the United States. The Fed has to tighten its policies as a result of inflation rates rising to levels not seen in many years.

Over the past few months, increases in interest rates have become the norm, frequently exceeding expectations. This time, a 75 BPS increase in interest rates is anticipated, with an 81% likelihood that it will occur. If things go as planned, the Fed will raise interest rates by 75 basis points for the fourth time in a row, which might be bad for assets in the cryptocurrency industry like Bitcoin.

What to anticipate in the future may frequently be determined by how bitcoin has performed in the past in connection to Fed interest rate increases. It will be a very tumultuous week for bitcoin and the cryptocurrency market if the current forecast for another 75 bps comes true.

When the Fed recently raised interest rates in September, the price of bitcoin reacted very unfavorably. Given that the price of BTC had plunged more than 5% in a single minute, it would actually turn out to be the most volatile response to the FOMC meeting. This came after three straight increases in interest rates.

Another interest rate hike this week is expected to lead to even larger volatility in the market. This will also coincide with the profit-taking that is currently ongoing due to bitcoin’s recovery above $20,000. It could be the last straw that drags the digital asset back below $20,000 once more.

Our MEME crypto futures contract exchange is optimistic about the cryptocurrency market as always, despite the bad economic environmen. We have many financial means to ensure the safety of our assets, such as using cryptocurrency futures contracts for hedging.

MEME is the world’s first DEX and CEX compatible WEB3 exchange, focused on providing secure, innovative and convenient contract trading services based on the principle that the safety of user assets and systems is paramount, and the implementation of trader-friendly closing strategies. MEME was founded by DEVISTA FOUNDATION LTD. and operates in compliance, providing trusted crypto asset services to investors in over 100 countries in the Americas, Europe, the Middle East and Asia through a strong technology finance team.

The flood waters fade and the cornerstones that still stand must reflect a consensus that transcends the debate over the definition and characterization of value. Even in today’s bear market, the established industry framework continues to operate. MEME exchange has been moving forward, walking with security, and leading the global digital asset trading platform innovation and upgrade. Driving the global digital asset value flow with the power of technology and finance.