Countdown to announce the outcome of the US Federal Reserve meeting; What are the consequences of a 0.75% growth in interest rates?

Recent reports indicate that US Federal Reserve officials plan to raise interest rates by 0.75%. The final decision of the US Federal Reserve will be announced later today; But if the bank interest rate in this country is to increase by 0.75%, what will be the reaction of the digital currency market?

To Report Bitcoin Desk, Bitcoin has experienced one of its biggest losses in the last two years; The downturn is largely driven by the turmoil in big business and investors’ fear of the Fed’s decision to raise interest rates faster and more than expected.

Bitcoin, now in its ninth consecutive downtrend, has recovered somewhat after falling to $ 20.834 in the last 30 months, but has remained negative for the past 24 hours. Is a percentage.

Bitcoin’s 15 percent drop on Monday marks the biggest one-day market crash since the Corona virus epidemic on March 12, 2020.

Arcane Research noted in a report yesterday that not only bitcoins, but all digital currencies with different market volumes have been affected by traders’ massive sales pressures in recent days, and that prices have somehow followed suit. They have been in the global stock market.

Sean Farrell, chief strategist at Fundstrat Investment Institute, said of the current state of the digital currency market:

We are now ending a decade of using monetary stimulus and rapidly increasing money supply, and market players are losing this opportunity for the first time in years. I think we should continue to see inflation before we can be sure that prices will recover and start an uptrend.

The Wall Street Journal reported on Monday that the US Federal Reserve apparently intends to raise interest rates by 0.75% after the end of its session today, which is a significant increase.

Raphael Bostic, head of the US Federal Reserve in Atlanta, said the decision would make traders fear of a contractionary monetary policy by 2022 without interruption. Goldman Sachs analysts are currently forecasting a 0.75% increase in bank interest rates for June and July (June and July) and expect interest rates in the country to reach 0.50% in September. And increase by 0.25% in November and December (November and December).

Researchers at the Arkan Research Institute have said:

Investors should at least for the next few days, themselves for price fluctuations and market correlations [با تغییرات نرخ بهره بانکی] Prepare.

As a result of all these concerns, the Bitcoin Fear and Greed Index has now reached 7% or “extreme fear”. The index, which has been fluctuating in the area of ​​extreme fear for the past 56 days, has now reached its lowest level since March 2020, the time of the Corona virus epidemic worldwide.