Will Crypto React as Fed Plans to Raise Interest Rates?

The US Federal Reserve believes inflation is still at a problematic level, further discussions of interest rate hikes have sparked worries about the impact on the crypto market. The current interest rate stance stands at 4.75-5% following nine consecutive aggressive interest rate hikes. With May’s upcoming Federal Open Market Committee (FOMC) meeting, there is an 80.2% probability of a 25 bps interest rate hike. Although, Neel Kukreti, a crypto analyst, believes the outcome of the 25 bps increase is unlikely to significantly decrease the price of Bitcoin; if the result is as expected by the market, Bitcoin’s price should remain relatively within ranges, he said. Conversely, the former Fed executive, Claudia Sahm, believes the agency should pause the interest rate hike and give the world a chance to catch up, referring to the Fed’s aggressive interest rate hike to over 4.75% in one year, which has had serious repercussions.