After the Federal Reserve's decision to raise their benchmark interest rate by 25 basis points on Wednesday, the crypto markets intelligence firm Santiment has reported a bullish outlook for the top cryptocurrency, Bitcoin (BTC). Santiment states that Bitcoin is demonstrating signs of emergence after the decision, exemplifying a “promising rise potential” that is being formed as the correlation between Bitcoin and equities begins to weaken. When market speculation of the rate hike decision increased, the active addresses on Bitcoin had also gone up, which is what Santiment interpreted as traders executing trades to capitalize on the potential of the decision.

Once the Fed decision was made official, Bitcoin had surged a moderate 2%, with trading volume amongst top market cap assets also increasing. Binance Coin (BNB), which had consistently been shorted for the past few weeks due to the legal issues it was encountering with US regulators, proved to show no signs of any overwhelming shorts.

As interest rates climb to new highs of 5.25%, Bitcoin has been noted to be less affected in comparison to other times when rate hikes occurred this year. Those rate hikes had sent Bitcoin and stocks to plummet, whereas the latest one caused the cryptocurrency to rise modestly while stocks maintained their decline.

The decline of Bitcoin's correlation to stocks has resulted in many people seeing the cryptocurrency and gold in a similar light. By acting as “safe-haven” assets, they are both not affected by the debt depreciation of fiat money and left unscathed by the instability of the modern banking system.

Overall, this report supports the strong potential of Bitcoin to defy the rules of traditional economies. The Federal Reserve rate decision has eased the path for cryptocurrency to establish itself with robust long-term growth in prices and usage. With the correlations weakening and both gold and Bitcoin going against the grain, the time for decentralized digital currencies to shine is near.



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