The crypto market’s performance for the year 2022 has largely been impacted by Federal Reserve’s interest rate hikes due to increasing inflation. While the Federal Reserve continues with its rate hikes, the cryptocurrencies, especially Bitcoin, are facing the heat. However, amidst unfavorable macroeconomic conditions, the crypto market has not yet hit new lows, instead the currencies are struggling to rise.
Meanwhile, Atlanta Fed President and CEO Rafael Boustik is of the opinion that the struggle to raise inflation rate constraints is still at the entry level.
At the time of reporting, Bitcoin is valued at $20,129 with a drop of 0.31% over the last 24hrs. Whereas Ethereum, the second largest cryptocurrency is trading at $1,365 after a surge of 1.15% in the past day.
World Bank’s warning against recession
Also, OPEC (Organization of Petroleum Exporting Countries) plans to reduce oil production so that the price of petrol will increase. The move is expected to impact higher inflation.
It’s a known fact that the Fed’s decision to increase the interest rates has negatively impacted the crypto market and other traditional markets. Yet, Bostic believes that the Fed is still in the early stage in terms of fighting inflation. As per the president, the Fed should continue its hawkish move and increase another 150 bps by the end of 2022
On the other hand, the World Bank and the United Nations have issued warnings to central banks against an upcoming recession.
