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Crypto Prices Plunge Amid Fear of Surprise Rate Hike

Guavy AI Editorial Team
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Cryptocurrency prices declined on Tuesday amid concerns over a potential US interest rate hike. Higher borrowing costs tend to steer investors away from riskier assets, and this fear is affecting cryptocurrency markets.

The Federal Reserve's upcoming announcement has sparked uncertainty among investors. The central bank is scheduled to announce its interest rate decision tomorrow, with many expecting rates to remain unchanged.

Citadel Securities, however, expects the Fed to surprise markets with a 25-basis-point rate hike tomorrow. This move would strengthen Fed Chair Kevin Warsh's credibility in combating inflation, according to Citadel.

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