Last December, the Fed interest rate was at a near-historic low of 0.08%, while crypto market capitalization was at a historic high of over $3 trillion. Today, the Fed interest rate is near 4%, while crypto’s market cap has fallen to $850 billion. It’s hard to say whether the Fed rate hikes directly caused the steep decline in cryptocurrency values or whether crypto was bound to fall to earth, but as long as Fed rates keep increasing, cryptocurrency will struggle to rebound—and so will other sectors. This Barron’s article explains.
