Federal Reserve's Pursuit of Reverse Wealth Effect Undermining Crypto

– The Federal Reserve's strategy of hiking interest rates is impacting the cryptocurrency market.

– The interest rate hikes correspond with significant drops in cryptocurrency prices.

[{"selector":"#anim-f4730335-dbcd-46be-add7-988f993a1aa4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

The Federal Reserve's policies have a direct correlation with crypto market volatility.

[{"selector":"#anim-138230c2-12ce-41c2-b0e3-2cfcef1a8b86 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-c6a940aa-56af-4547-9811-91414ecf572f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

The Federal Reserve is expected to continue raising interest rates based on market data feedback.

[{"selector":"#anim-9826d753-7ec3-47e4-9255-d6e37a379568","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dd981560-891d-4796-ac9f-b6eab803f7f9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The Federal Reserve's goal is to create a "reverse wealth effect" to encourage investors to reassess their portfolios.

[{"selector":"#anim-44ab0e64-43ec-4807-bb2d-657ad5c165a3","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-46e1ebe1-6a7f-4ea5-9d19-6e2eedef7b03 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.552713678800501e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The Federal Reserve is injecting chaos into markets to push investors to reevaluate their portfolios.

[{"selector":"#anim-a28f0b28-5fec-4d45-a2f5-3f1a34465912","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ae1fa1ec-8392-4329-810a-054ed7a9a3c0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The crypto industry needs to find ways to decouple from traditional markets to become a hedge against inflation.

[{"selector":"#anim-317cec02-2f2c-4113-b013-bd1e878bdcae","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-58c82fd7-117d-403b-893e-38b9d6e553fe [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Decentralized finance (DeFi) may offer a solution by breaking away from legacy financial models.

[{"selector":"#anim-0fa66211-35b2-4961-bbb3-9ed6841308ea","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-37bbba03-e88d-4412-aec9-f2e83f6f0548 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The Federal Reserve's policies may make it difficult for the crypto industry to bounce back.

[{"selector":"#anim-357cc7f0-6270-49e8-9c1a-fa2cb0d7c3c8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2e645ec1-10e8-4859-8cb3-756736a3d553 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]