On March 16, the FED officially announced a 25 bp interest rate hike, in line with market expectations, and the risk market generally opened up a complementary market. The expectation of a 50 bp rate hike and tapering in May may be shown in the market sentiment in advance. In the background of LFG buy BTC of short-term funds exhausted and micro-strategy mortgage re-buy, the recent market still retreat a lot, which may also be a manifestation of capital caution.
It seems that regardless of the up and down of the market, macro factors such as interest rate hike and QT have become the main consideration in the current cryptocurrency market market judgment. Meanwhile, in the background of high correlation of the stock market in the cryptocurrency circle, it may be natural for us to think that we can review the reaction of the stock market in the historical interest rate hike cycle to guess the possible market reaction in the current interest rate hike cycle, although history will not simply repeat itself, it is also very worthwhile to Although history does not simply repeat itself, it is well worth reviewing for reference.
Historical Review
According to data from Western Securities, the United States has experienced six interest rate hike cycles since the 1980s.