What Impacts do Interest Rates Have on Financial and Crypto Markets?

in #hive-1679223 years ago

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In this clip, we go further into our interest rate discussion and look at the impact it will have on financial markets.

With the cost of capital increasing, you might be wondering; how will this effect the stock and crypto markets? There will be short-term volatility but overall, raising rates is bearish for stocks. Bearish stocks usually means bearish crypto. You may see hedge funds that are involved with crypto liquidate their crypto due to problems in the stock market.

With the real estate market, we've seen that less people are applying for loans and financing houses. Increased rates make homes more expensive for buyers, thereby reducing the demand for home purchases.

As more and more of the economy becomes financialized, things become more sensitive to interest rates changing. Those little changes in buying power have magnified effects over time.

At the end of a stagflation period, like the one we're currently in, crypto usually comes out stronger and more publicly accepted on the other side. What happens in between then and now... could be a bumpy ride!

We talk about this and more in this clip from the Weekly AMA!

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Hello @khaleelkazi

The increase in interest rates enacted by the FED, whenever they have been above only attracts economic recession, and so far the cryptocurrency market has presented a high correlation with the rest of the traditional markets.

Best regards, be well.

It depends on where this interest rates is applied to generate profits which I believe is kind of huge especially when collecting loans to pay back. In this case of crypto as been said the bearish price have affected such interest applied on Investments but when prices pump up back it definitely what something huge to appreciate

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I hope crypto eventually comes out stronger. Bears are usually associated with wide range of speculations, this wouldn't be the first

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Hey 👋🙂⚡. Thanks alot for the Post it have me Resources info I didn't Know Before...Thanks again Friends👍🙂

I prefer to think about the bear market as a very long discount season. Helps with the old sanity.
And thanks for the recent support, much appreciated

Yay! 🤗
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The instability of the US economy is a major downside in the part of Bitcoin. Crypto can't die as far as the US economy won't.

Bitcoin being paired with the USD in forex I believe is the major reason of the crash we are having.

It's during president Biden is when we are experiencing this crash.

Add it up and review

Upvoted and reblogged

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