In the global financial market, the US interest rate hike has always been the focus of much attention. And Bitcoin, a cryptographic digital currency, has attracted much attention in recent years. So, when the United States decides to raise interest rates, what impact will it have on Bitcoin? Will it rise or fall? Let's find out.

First, let's review the general impact of US interest rate hikes on financial markets. US interest rate hikes usually lead to a stronger US dollar, which may have an impact on global asset prices. In this case, Bitcoin, a global asset, is no exception. Usually, asset prices are under pressure from a stronger US dollar, so Bitcoin prices may be negatively affected to a certain extent, leading to a decline. However, as a safe-haven asset, Bitcoin may sometimes be favored by investors, resulting in an increase.

Secondly, we need to consider the characteristics of Bitcoin itself. Bitcoin is a decentralized, limited-quantity digital currency with more volatile prices. When the financial market is turbulent, Bitcoin tends to show a different trend from traditional assets, and sometimes even runs counter to the global market trend. Therefore, the impact of US interest rate hikes on Bitcoin is not static and needs to be analyzed in combination with specific circumstances.

In addition, there are some factors that we need to pay attention to. The Bitcoin market is highly volatile and is often affected by market sentiment and investor behavior. When a major event such as a US interest rate hike occurs, investor sentiment may play a decisive role. If investors are optimistic about the US economic outlook, it may lead to rising asset prices, including Bitcoin. On the contrary, pessimism may trigger a sell-off, causing the price of Bitcoin to fall.

We can also find some inspiration from some past events. For example, after the Federal Reserve raised interest rates by 25 basis points in December 2015, the price of Bitcoin did not fall significantly, but continued to rise in the following months. This shows that the price of Bitcoin is affected by many factors and is not just dependent on the single event of the US interest rate hike.

In summary, the impact of the US interest rate hike on Bitcoin is a complex and changeable issue. Although in general, the US interest rate hike may have a negative impact on the price of Bitcoin, it is also possible to have a reverse trend. Investors should remain vigilant, consider various factors comprehensively, and make rational investment decisions. After all, the financial market is like the sea, and the market is unpredictable. Only steady investment can be invincible.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120BTC.COM) News: The FOMC meeting of the Federal Reserve (Fed) to discuss the interest rate hike decision will be held this week on September 20-21, and the interest rate decision for September will be announced at 2 a.m. Beijing time on Thursday (22nd). According to CME FedWatch data, the probability of the Fed raising interest rates by 75 basis points to 3.0-3.25% in September is 82%; the probability of raising interest rates by 100 basis points to 3.23-3.5% is 18% (the probability was zero nearly a week ago).

Since the August CPI released last week was higher than expected, the risk market has collectively dived. Will there be another 75 basis point increase in interest rates this time, or even a more aggressive 100 basis point increase? Market investors are all waiting seriously. Next, this article will sort out the long-term and short-term price changes of Bitcoin after each Fed releases the interest rate increase, hoping to help investors as one of the reference materials for judging market trends.

 List of recent interest rate hikes

 July 28, 2022 – 75 basis points rate hike

 June 16, 2022 – 75 basis points rate hike

 May 04, 2022 – 50 basis points rate hike

 March 17, 2022 – 25 basis points rate hike

 July 28, 2022 – 75 basis points rate hike/Bitcoin jumped 7% in one hour

As expected by the market, the Fed announced a 75 basis point rate hike, raising the benchmark interest rate to a nearly ten-year high. The FOMC statement at the time pointed out that the high inflation reflected the pressure brought by the COVID-19 pandemic, the rising food and energy prices, and the impact of the Russian-Ukrainian war, which made the Fed "highly concerned about inflation risks"; in order to achieve the long-term goal of keeping the inflation rate at 2%, the decision was made.

Because inflation seemed to be easing at the time, the overall risk market generally rose. Bitcoin (BTC) rose nearly 7% in one hour and reached a high of $24,000 in 24 hours.

 June 16, 2022 – 75 basis point rate hike/Bitcoin rose more than 12% and then fell

The Fed recorded the largest increase since 1994 at the time, announcing a 75 basis point rate hike, raising the benchmark interest rate to 1.5%~1.75%, which was higher than the interest rate level before the outbreak of the new crown epidemic in March 2020. Chairman Powell said at a press conference after the meeting: The 75 basis point rate hike will not become the norm. He said that consumers are spending, and although they have seen a slowdown in the economy, they are still at a healthy growth level.

At the moment when the interest rate was announced, Bitcoin hit a low of $20,250 and then began to rebound. The highest was close to $23,000, and it rose nearly 13% in six hours; but then the rise was unsustainable and another wave of rapid decline began.

 May 4, 2022 – 50 basis point rate hike/Bitcoin once approached 40,000 and then fell sharply

After the Fed announced a 50 basis point rate hike, it also stated that it would start shrinking its balance sheet from June 1. Starting from June, the monthly balance sheet shrinkage will be up to 47.5 billion US dollars, and it will rise to 95 billion US dollars starting in September. At that time, Chairman Powell also downplayed the possibility of a 75 basis point rate hike at the press conference after the meeting: US inflation is too high, and it is appropriate to raise interest rates. It is possible to raise interest rates by 50 basis points in the next two monetary policy meetings, but the possibility of a single 75 basis point rate hike was not actively considered. …High inflation means that the Fed is in a difficult situation, so the FOMC will continue to adjust its policies.

At that time, Bitcoin rose nearly 4% after the news of the rate hike came out, and once approached the 40,000 US dollar mark. But then it ushered in a sharp decline, falling to around 35,500 US dollars in 24 hours, and even falling below 30,000 US dollars a few days later.

 March 17, 2022 – 25 basis points rate hike/Bitcoin breaks through $40,000

The Fed announced a 25 basis point rate hike, which was the first time the Fed had started the rate hike mechanism in more than three years. At that time, Fed officials predicted that the median target interest rate this year would be 1.9% (now it has already exceeded, and the market expects it to reach 4% by the end of this year), and it was necessary to decide on rate hikes in the remaining Fed interest rate decision meetings.

Since the 25 basis point rate hike was in line with market expectations at the time, it eliminated market uncertainty, and Bitcoin rose from around $39,000 to nearly $41,600 in 24 hours. It peaked at around $48,000 at the end of March.