@vanderhaven
What’s the effect of central bank rate hikes on Bitcoin trends?
When central banks raise interest rates, risk assets like Bitcoin usually decline. Higher yields attract investors to bonds or fiat-based savings, reducing demand for crypto. Rate hikes also increase borrowing costs, tightening liquidity. However, if inflation remains high, some view Bitcoin as a hedge, creating mixed reactions. Long term, if rate hikes slow and economic pressure builds, Bitcoin can rebound. In essence, rising rates usually pressure Bitcoin’s price, but the overall macro environment also plays a key role.
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