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Topic: What is the impact of Fed Rate Hike on BTC prices? (Read 815 times)

sr. member
Activity: 266
Merit: 250
There is no precedent of btc prices against fed hike. With hike imminent, it will be interesting to wait and see the outcome.
legendary
Activity: 1190
Merit: 1000
In theory higher interest rates should mean a higher USD compared to anything else measured in USD (all things being equal). Higher interest rates mean more "reward" (interest) for holding USD
But Bitcoin may be different. Other commodities have been weak leading into this possible/probable rate cut but not BTC. Smiley
So BTC might have it's own idea.
legendary
Activity: 2282
Merit: 1023
I think nothing significant will happen due to the direct impact of rate hike. BTC price will naturally move up.
sr. member
Activity: 266
Merit: 250
If the fed keeps the interest rates the same then the price of bitcoins will go up.

If the fed raises the interest rates then the price of bitcoins will go up twice.

If the fed decreases the interest rates then the price of bitcoins will go up.

If there is lack of confidence in the system, prices of btc will go up.

We seen that happenee in Greece and China during government enforced property curbs.
legendary
Activity: 2184
Merit: 1024
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Aren't interest rates supposed to be market led?  What model do they follow in deciding whether to increase or decrease the rate?

Whatever model their following, that sure is one communist way of doing it, letting the 'best and the brightest' with their PHD's decide the fate of the whole...

What happened to the capitalist philosophy of 'let the free market decide'?

Edit:  Land of the free!  Watta joke.

Yup. Bitcoins time has come and it's been long overdue.
newbie
Activity: 52
Merit: 0
If you look at bitcoin as an investment similar to stocks and such, a interest rate increase will cause a decrease in the price, as capital flows to the increased returns on bonds.  But realistically, I don't think a tiny rate hike will affect bitcoin prices.  Not unless we're talking at least a couple of percent instead of a quarter percent.
sr. member
Activity: 451
Merit: 250
If the fed keeps the interest rates the same then the price of bitcoins will go up.

If the fed raises the interest rates then the price of bitcoins will go up twice.

If the fed decreases the interest rates then the price of bitcoins will go up.
legendary
Activity: 3556
Merit: 7011
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Aren't interest rates supposed to be market led?  What model do they follow in deciding whether to increase or decrease the rate?

Whatever model their following, that sure is one communist way of doing it, letting the 'best and the brightest' with their PHD's decide the fate of the whole...

What happened to the capitalist philosophy of 'let the free market decide'?

Edit:  Land of the free!  Watta joke.
Eh, nothing's 100% and the US isn't a totally free market.  I'd rather be in the US than a lot of other countries, though.

As far as the fed's hike's effect on bitcoin, I don't think it'll matter one iota.  BTC is a global thing, and one country's little rate hike isn't going to make any difference.
legendary
Activity: 3976
Merit: 1421
Life, Love and Laughter...
Aren't interest rates supposed to be market led?  What model do they follow in deciding whether to increase or decrease the rate?

Whatever model their following, that sure is one communist way of doing it, letting the 'best and the brightest' with their PHD's decide the fate of the whole...

What happened to the capitalist philosophy of 'let the free market decide'?

Edit:  Land of the free!  Watta joke.
sr. member
Activity: 295
Merit: 250
I'm not an economist either, but some users here say the FED might not hike the rate on Wednesday. Others say the FED might briefly hike it a tiny amount, then quickly backtrack and reduce it again.

Whatever impact a Fed Rate Hike might have on BTC prices may depend on what impact it has on China because most of the BTC trade volume comes from China.
sr. member
Activity: 266
Merit: 250
If i am not mistaken, the previous talks about rate hikes have not significantly cause any price impact on btc prices. The past btc price changes are due to global events in some countries that led to confidence loss of their native currency.


With fed hike likely to happen, what will happen to btc price? Oil is going to be more expensive and that will hit electricity prices, in turn hit miners? (Sorry. Thats my simplistic view, i am not an economist)
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