Will Bitcoin Rally End If Feds Raise Interest Rates Again This Month?
The burning question on every crypto investor's mind: Will Bitcoin's impressive rally crumble if the Federal Reserve increases interest rates again this month? The answer is complex, and past performance offers some clues. For instance, 5 de sept. de 2025 From when the Fed slashed rates to near zero in February 2025 to February 2025, when rate hikes resumed, Bitcoin saw a staggering 375% jump. Its performance in that period highlights that the relationship isn't always straightforward.
What happens to Bitcoin and the cryptocurrency market in general when the Feds raise interest rates this month, explained! Higher interest rates typically make riskier assets, like Bitcoin, less attractive as investors flock to safer, yield-bearing investments. This is because increased borrowing costs can reduce overall market liquidity and investment appetite.
However, Bitcoin's narrative as a hedge against inflation and a decentralized alternative to traditional finance can sometimes counteract these pressures. The record rally in bitcoin could lead the Federal Reserve to delay its planned interest rate cuts later this year, according to JPMorgan. This suggests that Bitcoin's strength could influence the Fed's decisions, creating a feedback loop.
Furthermore, factors beyond interest rates can significantly impact Bitcoin's price. Donald Trump’s upcoming inauguration could spark another Bitcoin bullish rally. Political events, regulatory changes, and technological advancements all play a role.
Be prepared for volatility. However, concerns over federal rates and the Federal Open Market Committee’s Wednesday’s upcoming Federal Reserve interest rate decision will likely cause volatility spikes in risky assets like Bitcoin. Short-term dips are possible, but the long-term trend will depend on a confluence of factors, including adoption rates, institutional interest, and the overall macroeconomic environment.
FXStreet analyst Lallalit Srijandorn said in a recent analysis that traders should closely monitor the Fed's commentary for hints about future policy. The market's reaction will likely be swift and decisive. Stay informed and manage your risk accordingly.
In conclusion, while a Fed rate hike could present a challenge, it won't necessarily spell the end of Bitcoin's rally. Other market forces are in play. Vigilance and informed decision-making are key to navigating the crypto landscape.