Crypto analyst Nicholas Merten says that interest rate hikes are unlikely to kill Bitcoin (BTC) and the digital asset markets.
In his latest YouTube update, Merten tells his 506,000 DataDash subscribers that increased interest rates could create short-term sell pressure, but likely won’t keep crypto down for long.
Merten notes that in 2015 when the Federal Reserve increased interest rates, Bitcoin still managed to rally from below $500 all the way to nearly $20,000 in 2018.
“Well, as we go across time on any given chart, this [when BTC was $500] is when the Fed started to increase interest rates. And this [when BTC was $11,000] is when the fed stopped increasing interest rates.
Certainly, there was a bear market, in between, for crypto, for sure.
But Bitcoin, during that period of time, went from around $477 all the way up to $11,000. And, if we’re really considering the peak price potential that it had during that period of time, it went all the way up to $20,000 practically.
So Bitcoin did a 40x in market cap from about $500 to $20,000 during that period of time. And it’s still, by the time the Fed started lowering interest rates and reversing the trend, was sitting around $11-$12,000, give or take.”
Unlike many analysts, Merten says that current interest rate hikes don’t necessarily spell “doomsday” for the crypto markets.
It doesn’t sound like it killed Bitcoin by any degree, and not to mention, Bitcoin was a much smaller and more fragile market at that time.
Again, some people may beg to differ and say that being a smaller market, it didn’t really get impacted, and stuff had more growth potential.
That’s a very fair point as well. But we can obviously see that this isn’t some doomsday scenario that killed crypto as an asset class, nor did it dramatically affect equities. Equities have their typical pullbacks, just like how any crypto asset does. But it continued to charter the new all-time highs.”
Bitcoin is trading for $38,524 at time of writing, up 1.84% on the day.
I
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sensvector/Chuenmanuse
The post Fears of Rising Interest Rates Hurting Bitcoin Overblown: Crypto Analyst Nicholas Merten appeared first on The Daily Hodl.
