Let's get right to it, if you invest long enough, you're going to have to deal with markets behaving in knee-jerk ways, and the recent selloff is Bitcoin (BTC) fits the bill to a T.
The fact is Bitcoin, along with the entire crypto asset class, got pummeled because the Fed signaled that they're in the mood to raise interest rates sooner rather than later. This outlook, which came from the Fed's minutes of the December meeting, wasn't what the markets expected. And we all know that when the markets don't get what they expect, they take their toys, go home, and sell pretty much everything in sight.
So, what juicy secret did the minutes reveal? As with most Fed announcements, precise forecasts are hard to glean. But the gist was that the Fed would raise rates sooner rather than later.
But if you think that it was just crypto that took it on the chin, think again. This more hawkish view on interest rates also hammered stocks, especially tech stocks.
All told, since the beginning of 2022, Bitcoin has dropped 14%, the NASDAQ 7%, and the S&P 4%. So, basically, once the Fed's minutes hit the street, there was nowhere to hide.
What’s So Bad About Higher Interest Rates?
So, why don't markets like higher rates? Continue reading "The Truth Behind The Bitcoin Sell-Off"