Crypto:
30251
Bitcoin:
$66.127
% 1.20
BTC Dominance:
%54.5
% 0.21
Market Cap:
$2.38 T
% 1.77
Fear & Greed:
74 / 100
Bitcoin:
$ 66.127
BTC Dominance:
% 54.5
Market Cap:
$2.38 T

Fed Official on Rate Hike: How Does It Affect Bitcoin?

Fed, Bitcoin

Minneapolis Fed President Neel Kashkari has said that interest rates could be held at current levels for an extended period.

In his comments yesterday, Kashkari said, “The most likely scenario is probably that we’re going to be where we are for a long time.”

The Fed official said, “If we see inflation come down or we see some weakness in the labor market, that could prompt us to lower interest rates.”

Signaling that they could raise rates if inflation remains at 3%, Kashkari said he doesn’t see this scenario as very likely, but he’s not ruling it out entirely.

Investors may move away from riskier assets like Bitcoin in an environment of high interest rates. The price of Bitcoin had risen last week after the Fed signaled that it could cut interest rates.

CoinSwitch Ventures Investment Manager Parth Chaturvedi said, “The crypto market rallied after US employment data showed the economy was slowing down more than expected. A slowdown in the economy generally leads to lower inflation and lower interest rates.”

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