📊BTC and FED RATE: is it better to hike? Crypto mythbusters!
Some experts use such rules as hiking rate = bear market and falling rate = bull market but if we compare the fed rate with the BTC price we can see that the price is not always follow this rule. Trully say in most cases it don`t.
Let's dive deeper into it!
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📊THE BULL MARKETS:
1️⃣ 2015-2017 – the rate is growing.
2️⃣ 2018-2019 - the rate isn`t growing but still high.
3️⃣ 2020-2021 - the rate is 0 and market is growing.
In 2 out of 3 cases the market is growing when the rate is high.
At the end if we compare two Bull markets of 2017 and 2021 there is more massive and longer growth was at 2017 when the rate was hicking.
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📊THE BEAR MARKETS:
1️⃣ 2017-2018 - the rate is growing and market is falling. Actually, it can happen because of the lack of buyers. It was the biggest BTC bullrun so the hicking rate is not the main reason.
2️⃣ 2019-2020 - the rate is falling and price is falling too.
3️⃣ 2021-2022 - the rate is growing but the price is falling.
In 2 out of 3 cases the hicking of the rate push the price lower but as we have already identified the 1st bear market of 2017-2018 had to happen after the biggest bull market.
🚩Why the market can fall this time? We had the case of Do Kwon and Luna, UST. Additionally, the stock market push the price of crypto lower. This 2 thing caused the extreme fear at the market and forced retail traders to sell.
🏁Finally, we can say that this pattern is unclear and in most cases work against the rule "hicking rate = bear market".
Traders, what do you think about this patterns of the FED rate and BTC price? Maybe we need to use it with other aproaches such as inflation rate, money supply etc together to make a succesfull fundamental analysis? Write your thoughts in the comments.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Let's dive deeper into it!
______________
📊THE BULL MARKETS:
1️⃣ 2015-2017 – the rate is growing.
2️⃣ 2018-2019 - the rate isn`t growing but still high.
3️⃣ 2020-2021 - the rate is 0 and market is growing.
In 2 out of 3 cases the market is growing when the rate is high.
At the end if we compare two Bull markets of 2017 and 2021 there is more massive and longer growth was at 2017 when the rate was hicking.
______________
📊THE BEAR MARKETS:
1️⃣ 2017-2018 - the rate is growing and market is falling. Actually, it can happen because of the lack of buyers. It was the biggest BTC bullrun so the hicking rate is not the main reason.
2️⃣ 2019-2020 - the rate is falling and price is falling too.
3️⃣ 2021-2022 - the rate is growing but the price is falling.
In 2 out of 3 cases the hicking of the rate push the price lower but as we have already identified the 1st bear market of 2017-2018 had to happen after the biggest bull market.
🚩Why the market can fall this time? We had the case of Do Kwon and Luna, UST. Additionally, the stock market push the price of crypto lower. This 2 thing caused the extreme fear at the market and forced retail traders to sell.
🏁Finally, we can say that this pattern is unclear and in most cases work against the rule "hicking rate = bear market".
Traders, what do you think about this patterns of the FED rate and BTC price? Maybe we need to use it with other aproaches such as inflation rate, money supply etc together to make a succesfull fundamental analysis? Write your thoughts in the comments.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
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