Conventional wisdom holds that if the dollar is stronger, assets such as cryptocurrencies get cheaper. Yet is that really the case?
This past week, the Federal Reserve did exactly what most people predicted: It raised the fed funds rate by 75 basis points – for the third time in a row. For months now, consumer prices have surged at a rate not seen since the fourth season of Diff’rent Strokes – so raising borrowing costs, it’s hoped, will make money a little more expensive and thus cool the hot economy.
Higher interest rates fuel demand for dollars (to put it in terms crypto folks can understand, remember how everyone was buying UST because of the near 20% APYs the Anchor protocol was paying back in April?). The U.S. Dollar Index, which measures the greenback against a basket of six foreign currencies, is now trading at a 20-year high after surging about 20% in the last year. In that time, bitcoin (BTC) has dropped a whopping 58%.
“Dollar strength is a unilateral and powerful force,”...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...