Bitcoin Less Likely to Drop Despite Fed Rate Hikes, Analyst Says

Cryptocurrency analyst Murphy (@Murphychen888) has analyzed that Bitcoin is unlikely to enter a bear market immediately even if the U.S. Federal Reserve begins raising interest rates. Murphy stated, 'Past cases show that the speed of tightening and the structure of BTC holdings are more critical factors influencing market trends than whether rate hikes occur at all. During the Fed's 425bp rate increases in 2022, Bitcoin dropped from around $41,000 to $15,800 right after the first hike. In contrast, during 2023 when rates rose four times by 25bp each, Bitcoin surged from $16,500 to $42,000. Currently, BTC's structure is more similar to early 2023 than the initial rate hike period in 2022, having formed a bottom for about six months and undergone significant holding turnover amid repeated selling.'