We are now witnessing a temporary rose crypto market cap. As part of the fight against inflation, the U.S. Federal Reserve raised the prime rate by 75 bps during the next meeting. – to a range of 2.25-2.5% per annum. The crypto market reacted to the news with positive dynamics. How long can the rise in the crypto industry last, and what other consequences of the Fed’s decision risk investors?

Crypto market tips – what should investors do?

It’s difficult to give specific crypto-market tips. One would assume that the crypto market is responding to the fact that the Fed’s rate hike was softer than many expected. That said, experienced traders point out that cryptocurrency investors are too early to get excited.

“People are celebrating the 75 bps as if the change opens up the prospect of growth for the crypto market. Twitter users have completely lost their minds,” was the opinion shared by a trader popular in the cryptocurrency community who runs a microblog under the nickname Psycho.

The fact is that the U.S. government abandoned its policy of quantitative easing as part of the fight against inflation, which implies printing more money and then pouring it into the market. Against the backdrop of the changes, the crypto market faced a liquidity crisis. Therefore, many crypto-industry participants believe that the Fed’s fight against inflation and an increase in the prime rate could put pressure on the cryptocurrency rate.

No reason for optimism

Is the crypto market going to crash? Analyst Lark Davis drew attention to the market’s positive reaction to the Fed’s decision. Many of his subscribers think that prices won’t rise for a long time. In their opinion, the next wave of fall may hit cryptocurrencies this week.

A popular analyst in the cryptocommunity, who runs a microblog under the nickname Profit Blue, holds a similar point of view. In his opinion, bitcoin is preparing for a fall. This is indicated by the results of technical analysis. Profit Blue drew attention to the fact that the cryptocurrency repeats the figure of late May – early June, which led BTC to the renewal of the local minimum at $17,708. This time, Profit Blue is sure, history may repeat itself.

As a reminder, earlier, similar results of technical analysis were shared by Peter Brandt, a trader and analyst popular in the crypto community, who managed to correctly predict the cryptozyme of 2018. He saw a technical analysis figure on the bitcoin chart, which, in his opinion, foretells the BTC’s imminent exit to new lows.

Some experts do not exclude the decrease in BTC to $10-12 thousand and lower. Many of them are sure that the current growth of the cryptocurrency market is nothing more than a correction after a protracted fall.

Crypto market rose analysis: crypto investors should look ahead

Many members of the crypto community believe that investors should not be intimidated by the prospects of a market decline. In their opinion, sooner or later, investments in cryptocurrency will bear fruit. For example, Changpen Zhao, head of the largest cryptocurrency exchange Binance, holds this view.

“Learn about recession and inflation, and then explore [the possibilities of] bitcoin and Binance Coin,” the Binance head wrote amid an online discussion about the impact of the Fed’s decisions on the market.

For his part, analyst Joe Burnett pointed out that cryptocurrency market movements are cyclical. In his microblog, he reminded readers that decadence always goes with cryptozymes. The current period of falling prices was no exception.

Authors of the Twitter channel Wicked Smart Bitcoin shared a similar opinion. They think that the decisions of the Fed and other regulators are just “dust” that loses any significance in the context of talks about bitcoin’s global future.

Wicked Smart Bitcoin explains their point of view with the fact that BTC’s growth is programmed by halvings, which corrects the rate of new coins coming into the market. Many are also convinced that the financial market has already passed the main phase of the crisis. According to this logic, there is a recovery ahead for the industry.