Why Is Bitcoin, Ethereum, XRP, Solana Price Dropping Right Now?
Categories: Bitcoin US
One reason for Bitcoin’s recent price drop is the Fed’s increase of interest rates, which is the most significant increase in decades. The cause for the current interest rate hike is an attempt by the Fed to stabilize the inflation in the market, helping bring the prices down for Americans.For those confused about how the Fed interest rates affect them. In short, the lower the interest rate, the more worthwhile it is to spend money. The higher the interest rate, the better it’s to save money. Lower interest rates help boost the economy, while higher interest rates help curb inflation. Since inflation is currently at an all-time high of 8.5%, the Fed is looking to substantially increase interest rates to help curb the rising inflation and stabilize the economy.CRYPTOCURRENCIES FOLLOW BITCOIN’S PRICE ACTIONBitcoin is still king when it comes to influencing the rest of the cryptocurrency market’s price actions. When Bitcoin goes down, so do most other cryptocurrencies. This is why we see meme coins, Metaverse coins, and other projects show significant price decline today. The good news is, if you’re brave enough to buy the dip, this could be an excellent opportunity to open positions on underrated and undervalued projects that could see significant price growth when the market rebounds. However, the correction could just be starting, and Bitcoin’s price could continue tumbling lower.