Here’s Why the Fed’s 0.75% Rate Raise Could Be Bullish for Bitcoin and Altcoins

The S&P 500 and Nasdaq Composite suffered their worst weekly performance since June as investors remain concerned that the Federal Reserve will have to continue with its aggressive monetary policy to curb inflation and that could lead to a recession in the US.

Bitcoin (BTC) is closely correlated with the S&P 500 and is on track to fall more than 9% this week. If this correlation continues, it could lead to more pain for the crypto markets as Sharon Bell, strategist at Goldman Sachs warned that sharp increases in interest rates could lead to 26% decline in the S&P 500.

View daily crypto market data. source: 360 . coin

A majority expects the Fed to raise rates by 75 basis points at the next meeting on September 20 to September 21, but the FedWatch tool shows an 18% probability of a 100 basis point rate hike. This uncertainty can keep traders on edge, resulting in higher volatility in the short term.

If the Fed rate hike is in line with market expectations, cryptocurrency may attract buyers. Let’s examine the charts of five positive cryptocurrencies in the near term.