Daily Crypto Deep Dive: The Fed Could Raise Rates Again — What Happens to Bitcoin Now?

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For years, crypto investors have been told that interest rates would eventually come down, liquidity would return, and Bitcoin would benefit. But what happens if that entire story is wrong?

In today’s Daily Crypto Deep Dive, we examine why the Federal Reserve could actually raise interest rates again, what stubborn inflation, rising oil prices and tensions around the Strait of Hormuz have to do with monetary policy, and why decisions made by the Fed can have such a powerful impact on Bitcoin and the wider crypto market.

We explain exactly how higher interest rates affect liquidity, borrowing costs, Treasury yields, the U.S. dollar and investors’ willingness to take risk. We also look at why Bitcoin can fall before the Fed even changes rates, simply because markets begin pricing in tighter monetary policy.

We break down what major analysts and institutions are saying, including the more hawkish forecasts calling for multiple rate hikes and the opposing view that markets may be far too pessimistic.

Most importantly, we examine three possible scenarios for Bitcoin: further rate hikes and deeper downside, months of frustrating higher-for-longer conditions, or a bullish shift if inflation cools and rate-hike expectations disappear.

Could Bitcoin retest $60,000, fall toward $54,000 or even enter the $40,000s? Or could the removal of the rate-hike threat become the catalyst for the next major recovery?

This episode explains the macroeconomic forces that could decide Bitcoin’s next major move.

Not financial advice. Crypto assets are volatile and involve a risk of loss. Always do your own research.

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