Bitcoin Goes on a Wild Ride as Federal Reserve Hikes Interest Rates
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Bitcoin took a hit yesterday following the US Federal Reserve Chairman’s announcement of yet another interest rate hike. The global banking crisis in recent weeks had pushed the primary cryptocurrency to a nine-month high of over $28,000, but it dropped to $26,700 after the announcement.
Altcoins on the Tron blockchain were also affected, with many trading in the red after allegations against Justin Sun from the SEC. Despite calls from prominent figures such as Bill Ackman and Elon Musk for the Fed to abandon its rate-hiking strategy, the central bank raised key interest rates by 25 basis points.
Bitcoin Records $260 Million in Liquidations in 24 Hours
Bitcoin’s price volatility continued in the opposite direction, leading to a large number of liquidations totaling $260 million in 24 hours. However, despite the drop, Bitcoin remains one of the most valuable cryptocurrencies with a market capitalization of over $500 billion.
Experts suggest that Bitcoin’s long-term value will depend on whether it can become more widely adopted and recognized as a legitimate currency. The use of Bitcoin and other cryptocurrencies for transactions is still relatively limited, and regulatory challenges remain. However, the recent surge in Bitcoin’s value has attracted increased attention from investors and could signal a shift in attitudes towards the digital asset.
As the world continues to grapple with economic uncertainty and global financial crises, Bitcoin and other cryptocurrencies may offer an alternative to traditional forms of investment and payment. However, only time will tell whether Bitcoin can maintain its value and become a viable option for everyday transactions.
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