@rosellin9o5

66. How does Bitcoin typically react to unexpected interest rate hikes by the Federal Reserve? Bitcoin tends to drop sharply after surprise rate hikes, as risk assets become less attractive in a high-interest environment. Higher rates increase the opportunity cost of holding BTC, while also strengthening the dollar—often a bearish factor for crypto. Technically, BTC may break below support levels due to panic selling. However, the size and tone of the Fed’s message matter. If markets expect continued tightening, Bitcoin may enter a medium-term downtrend. In the short term (1-3 weeks), expect increased volatility and a potential 5-8% correction, unless macro sentiment improves.

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