The Aftermath of the Fed’s Rate Hike
On September 21, Bitcoin (BTC) was riding high, but after the Federal Reserve announced another 75 basis point interest rate hike, it quickly hit the brakes. Who knew digital currency could be so dramatic? Within minutes of the Fed’s statement, BTC fell from its intraday high of $19,950 to about $18,660, registering a drop of around 6.5%. Talk about a rollercoaster ride!
Market Meltdown: Bitcoin, Stocks, and Treasury Yields
This wasn’t just a BTC-specific situation; the U.S. stock market joined the pity party. The S&P 500 slipped by 0.5% right after the news, proving once again that birds of a feather really do crash together. Meanwhile, the yield on the 10-year U.S. Treasury note surged to 3.6%, while the 2-year note saw a similar uptick from 3.98% to 4%. If you’re keeping score, that’s cash becoming more attractive than crypto.
The DXY: The King of Currencies
In a twist worthy of a summer blockbuster, the U.S. dollar index (DXY) showed up to the party, soaring to 111.57—the highest it’s been in 20 years! Investors’ shift to cash signals a growing nervousness; they evidently prefer to clutch their dollars tightly while the market swings wildly.
Future Forecasts: What Lies Ahead for BTC?
The Federal Reserve’s updated
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