The United States Federal Reserve announced the interest rate hikes, which could have played a role in the correction in the crypto markets.
After rallying to a monthly high and crossing $18000, BTC underwent a correction and settled below $18k. Analysts had hoped for a bullish trend if Bitcoin crossed its resistance, but the recent interest rate hikes stopped the rally. Yet, experts remained hopeful, claiming that the crypto markets have roughly recovered from their November losses and would continue to do well in 2023.
The 50 basis point interest rate hike dampened the crypto markets’ spirits after it rallied strongly post favorable inflation reports. Fed Chair Jerome maintained their hawkish stance on inflation and wanted it to come down to 2%. As a result, the rate hikes are expected to continue in 2023. Coupled with fresh new regulatory norms and stable macroeconomic conditions going into 2023, experts are bullish on the long-term perspective of crypto.
BTC/USD price chart in 2022
Bitcoin is trading at around $17700 on December 15, 2022, with BTC/USD down by 0.55% in the last 24 hours. BTC/USD is trading above its 20-day EMA (16,860.00), with most altcoins trading lower in the last 24 hours.