Bitcoin May Face Another Crash Due to This ECB Move: Details
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Bitcoin has remained stable so far, but twice this year this move has caused it to crash
CNBC just reported that the European Central Bank has experienced the largest rate hike in its history, raising interest rates by 75 basis points.
The ECB just raised interest rates by 75 basis points, the largest increase in history.
— Squawk Box (@SquawkCNBC) September 8, 2022
Earlier this year, in early May and mid-June, the US Federal Reserve took similar action, raising interest rates by half a percentage point and again by 75 percentage points. These were the biggest hikes in periods of more than 20 and almost 30 years.
The largest digital cryptocurrency, Bitcoin, remained stable both times, showing up to 1% growth on this news.
Now the ECB has joined the interest rate hike policy initiated by the Fed. So far, BTC is up almost 1%. However, both interest rate increases were followed by a sharp drop in prices.
On June 15, when the second rally was put in place, Bitcoin fell above the $22,500 area to $17,744.
As previously reported by U.Today, the Federal Reserve has discussed another rate hike of 75 percent soon, according to The Wall Street Journal. Also, on August 26, Fed Chairman Jerome Powell announced that the US central bank will continue its accommodative policy to try to break the back limits of inflation.
At the time of writing, Bitcoin is changing hands at $19,256 per CoinMarketCap.