Fed and BOJ Rate Hikes Fuel Crypto Uncertainty for Indian Investors
The US Federal Reserve and the Bank of Japan have raised interest rates, putting pressure on the crypto market. The Fed increased its rate by 25 basis points to 3.75%-4%, while the BOJ raised its rate to 1.25%, marking its highest level in around 31 years.
The moves are aimed at combating inflation pressures in both countries. However, higher interest rates can make investors more cautious and less enthusiastic about investing in risky assets like Bitcoin.
Despite this, the impact may not be immediate. As of now, Bitcoin is trading at $77,430 without showing a severe negative trend. The total crypto market cap is also up 1.89% to $2.66 trillion.
The Fed and BOJ's decisions are critical for India as they can influence the movement of the US dollar and the Indian rupee. If the dollar rises, it can put additional pressure on the rupee, affecting the price of dollar-denominated assets like Bitcoin in INR.