How will Bitcoin and gold go after raising interest rates?
The highly anticipated Fed interest rate decision in March finally revealed that the Fed did not unexpectedly raise the interest rate by 25 basis points. This caused a suspense that affected the entire market to fall.
As expected by the market, the gold market was depressed before the rate hike, but it rose sharply after the rate hike really arrived.
This week, the price of gold fell below the level of US$1,310 per ounce. However, on Wednesday, affected by the rate hike, the gold market exceeded US$1,330 per ounce, refreshing its two-week high and gaining nearly 1.7% during the day.
Will Rhind, CEO of GraniteShares, said that raising interest rates is actually good for gold.
Payigine CEO Kirill Radchenko also believes that the gold market may be affected positively.
However, James Song, the founder of ExsulCoin, believes that gold has been used as a tool to hedge inflation, and that gold will be affected if the dollar strengthens after it continues.
Latinum CEO David Johnson said he is optimistic about gold.
With the risk aversion in the capital market and the global economic stimulus reducing, gold will be promoted.
Johnson also stated that Bitcoin prices will be pushed higher as regulation becomes more transparent.
Bitcoin has always been used to compare with gold. Bitcoin prices have recently fallen again and fell below the $8,000 level this week. However, after recovering in recent days, they have now returned to over $9,000.
After the Fed’s interest rate decision was released on Wednesday, the Bitcoin market saw a slight increase.
BitMEX CEO Arthur Hayes believes that short-term Bitcoin is affected by its unique influencing factors.
Mati Greenspan, senior market analyst at eToro, also believes that bitcoin is largely separate from the traditional market and has little to do with interest rate changes.
RagingBull CEO Jeff Bishop said that people buy Bitcoin for a variety of reasons.
When there is an asset that can rise 10% in a week and this is the norm, you will not even consider whether the Fed's interest rate exceeds 3%.