How raising interest rates will affect the cryptocurrency market

The one and only reason Bitcoin has grown to 60k is because the Fed has printed more money than ever in the past. I will explain now how the monkey, if the FED finishes printing money and even starts to download money Bitcoin will fall enormously

>Are you retarded what do you think Interest rates hikes immediate effects are? A complete dry up of liquidity in the markets put the rest of the picture yourself or study the history of the Fed and its fight against inflation in the 70's and 80's.
That's not math. Try again

money supply inflation is 75% per year
price inflation is 25% per year
FED, we wuz 0.0.000005%
everything will just pump

>The one and only reason Bitcoin has grown to 60k is because the Fed has printed more money than ever in the past.
Please stop pretending you understand price action. Yes obviously currency dying is why assets pump, but stop pretending you knew it was going to peak at around 60k

Economics has nothing to do with mathematics, it derives only from mathematical patterns, but conclusions must be drawn through observation. Try again

Historically, so definitely every increase in interest rates has caused a crisis.

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That's retarded. By your logic no one in the fed uses math at all and just randomly picks numbers up their ass to determine how high they should raise rates. Gtfo with this cringe bullshit.

Who says the dollar will die xd? The dollar will strengthen due to the hike

there will be no hike
this time the excuse will be muh war

Raising the cost of credit causes less credit to be used.

So less leverage, less shorting or longs as the cost of credit is higher so less can be bought.

This makes short squeesing easier as the shorts become more expensive to maintain.
The entire market is being held down do to leverage.

The FED will cause liquidations and the market will rise.
Then as the market rises more pile on and it rises faster.

It is exactly as you said. Incompetent people work in the Fedral Reserve. The only factor behind the interest rate hike is the inflation which is at its highest in 40 years

>I am saying I don't understand how them raising rates will be the magic needed to undo the damage they created with inflation.
Raising rates *won't* fix inflation. It doesn't matter if they raise it a quarter point or a full point, the yearly real inflation is in the double digits. Moreover, they cannot hike aggressively without triggering cascading debt defaults, unemployment, and major global recession if not depression, notwithstanding the government's debt obligations, which will go unpaid if the taps close, and we already know they won't let that happen. The Fed is paying lip service to political pressure, an actual commitment to rate hikes and deflation would be suicide. It's certainly not impossible for them to go down this road, but it defies reason to an extreme degree. The thing is, they can drag it all out for an exceptionally long time, which means that even if we understand that the underlying current is pulling us inexorably in one direction, there is plenty of room for games to be played with markets. Unless you are among those sitting in the market maker's seat, these are forces outside of our control. As with everything else that gets hyped in the media as a "reason" for why the market is moving a certain way, rate hikes are just another narrative for shaping public perception. When the Fed commits to a "conservative hike schedule", or doesn't hike at all because of X invented reason, expect narratives to flip suddenly bullish

>Who says the dollar will die xd?
>xd
Fucking hell. He's a redditer
btw you didn't even understand what I was saying.
You said:
>After all, cryptocurrencies are priced in US dollars
Again. My point was it is based on the pairs.
I also didn't say the dollar wouldn't strengthen compared to now. I'm saying I don't see how their rate hikes would have the intended effects of undoing all their shit. You said you could answer questions, but you shy away from math showing you're just a normie with no real knowledge on the subject. Shit thread, op.

You have an interesting economy, however, it seems to me that the market, which mostly bases its valuation on a loan and, above all, playing on a fucking leverage, will fall if the loan installments increase

there you go
and we pump
so buy now retards

Even if they are incompetent, they don't just pick random numbers out of their ass. Fuck this thread.

The FED raises rates and the cost to just service existing US debt becomes untenable. The FED can’t do shit.

correct but there is a cheat code, where the goberment take even more loans to pay back the old

Well considering the crypto "market' is 90% correlated with tech stocks, probably not well

There is no crypto market, it's just fagsdaq leveraged trading.

I started to think that a rate hike was already priced in to be honest

yes and when there is NO hike, because muh war, we pump

ehh. And you play up to some pair against the dollar or the Venezuelan bolivar. Exactly. How will raising interest rates work? First of all, the loan installments that have been fueling this bubble for many years will increase. Bitcoin bases its existence on too much money that is in circulation, if this money suddenly starts to disappear, bitcoin will end its existence. Because it's obvious like 2 + 1

Everything will bottom in mid march. Will get shrugged off and continue higher for peak in Q3 or Q4.

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There will be no war, putin will especially scare the cryptocurrency market to fall and I can buy more dogecoin

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the dems need a war or they will die on election day

I sincerely doubt it because the Fed has announced a rate hike several times a year