The live stream is discussing and analyzing the outcome of Federal Reserve Chair Jerome Powell’s announcement regarding the interest rates, which have been continuously increasing for the last 10 months. The expectation is that there will be another interest rate hike of 0.25 or 25 basis points, causing concerns of bank collapses and debt ceiling fears. The stream also discusses the impact of interest rates on the cost of capital and inflation, as well as the future expectations for interest rates according to the CME Group website. The viewer’s opinions on whether the crypto market will pump or dump as a result of the announcement are also sought after.
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Crypto Live Stream: Interest Rate Hike and its Impact on Crypto Market
When and What to Expect?
The live stream took place about 45 minutes before Jerome Powell, the Chairman of the Federal Reserve, announced the latest interest rate decision on June 13, 2018. Powell’s speech was a hot topic in the cryptocurrency sphere as it had an impact on the crypto market.
Interest Rate Hike
The interest rate hike was announced in late 2015 as a part of the Federal Reserve’s plan to normalize the economy. The hike was expected to increase the cost of capital, which directly impacted the borrowing costs of businesses. The decision to increase interest rates provoked several debates and discussions regarding its impact on the economy.
Crypto Market’s Reaction
The announcement of the interest rate hike had a ripple effect on the cryptocurrency market. In the lead up to the announcement, Bitcoin and other cryptocurrencies saw a decline in their prices due to investor uncertainty. Cryptocurrency enthusiasts and traders speculated on whether or not the news would have a lasting effect on the crypto market.
The Future of Crypto
The interest rate hike had a significant impact on the crypto market, but many believe it was not a long-term effect. Over time, Bitcoin and other cryptocurrencies regained their lost value and continued to move forward toward mainstream adoption. As the crypto market continues to grow and mature, experts predict that the impact of interest rate hikes on the market will lessen.
Conclusion
The June 2018 interest rate hike played a vital role in shaping the future of cryptocurrency. Despite the short-term impact, Bitcoin and other cryptocurrencies continued to thrive and evolve. As the crypto market matures, it will likely become less susceptible to external factors like interest rate hikes. The crypto community continues to take advantage of emerging technologies to improve the industry and shape the future of finance.
