Investors in Bitcoin, Ripple, Ethereum, and other major cryptocurrencies should closely watch the Federal Reserve to get a sense of how fast and how far U.S. interest rates will climb. For an obvious reason: higher interest rates could deflate the price of these assets, as they did back in early 2000 with dot.com stocks.
Darren Marble, CEO of CrowdfundX, agrees with Gouran that higher interest rates won’t have a big impact on the price of cryptocurrencies. He worries more about the uncertainty surrounding cryptocurrency regulations than he does about the prospect of rising interest rates.
“I do not believe higher interest rates will crush Bitcoin anytime soon,” says Marble.“The Fed is raising interest rates. But it’s doing so cautiously. As we have seen over the past couple months, uncertainty around regulation has been a much bigger factor in the price depreciation of Bitcoin than interest rates might have.”
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