Bitcoin PA and US Fed Rate Rises since 2021 - the Effects
So, The USA Federal Reserve just raised rates by 25 points as expected. And the question on most peoples minds is "Will this upset my trading?" And if, Like Me, you focus on BITCOIN, you should pay attention but more to what it does to OTHER ASSETS. The Main chart shows Bitcoin INDEX and All the Rate decisions, when they happened. ( It is a weekly chart so the EXACT day is not there but it is in that week) The whole Chart is to Big to fit on one screen so here is the chart from the 2021 ATH to the Mid 2024 range. https://www.tradingview.com/x/Z31vydJH/ What are these RED and GREEN Boxes? In the Chart from 2021, the first RED Box is where the US FED raised Rates and Bitcoin PA Dropped. Many would say this would be expected as borrowing got more expensive. The Fed Effect However, the GREEN box that Follows is were the FED CONTINUED to Raise Rates but Bitcoin PA ROSE or Ranged. It DID NOT Drop like a Stone as previously. NO FED EFFECT The Main chart also has a RED box, https://www.tradingview.com/x/VicHO22z/ As you can see, this is were Bitcoin Dropped after that October 2025 ATH. But the FED Was Lowering the interest Rate for Borrowing ! Why was Bitcoin not paying attention ? Again, NO FED EFFECT There are many reasons, other assets were more favourable, Mostly due to Bitcoin being OVER BOUGHT on may time frames and Due a Bear Market after ATH. So, as you can See, BITCOIN Follows its own rules and one reason for that, and this needs to be remembered, BITCOIN IS NON CENTRALIZED> IT IS NOT BASED IN THE USA IT DOES NOT NEED TO BE EFFECTED BY THE FED and as you can very clearlly see here, It often Is not. That is NOT a insult to the USA, just a Fact. There are many HUGE American Bitcoin investors and YES, for them ,borrowing to buy Bitcoin costs more.... WE just have to wait and see where Bitcoin WANTS to go next.......but I do not think that recent BULLISH moves will be undone by raises in interest Rates in the USA BUT WE DO NEED TO REMAIN CAUTIOUS AS GLOBAL MACRO WILL HAVE EFFECTS. And yes I was shouting Sorry Stay Safe, Love one another and BUY BITCOIN
